If you are planning to invest in a furnished rental property, the French Non-Professional Furnished Rental status (LMNP) remains one of the most appealing frameworks available to private landlords in 2025. It is simple to implement and offers highly favorable tax treatment—especially when choosing the real tax regime with depreciation. However, you must ensure your property complies with the legal requirements and select the appropriate tax regime (micro-BIC or real) before getting started.

This guide walks you through the registration process, administrative obligations, tax rules, costs, and best practices to set up your furnished rental successfully.

Quick Overview: What You Need to Remember

If you have just purchased a furnished property—or plan to convert an existing one into a furnished rental—here are the core steps to activate LMNP status smoothly:

Ensure the dwelling meets all legal standards (required furniture, decency criteria, energy performance).
Gather all necessary documents: ID, proof of address, ownership deed, and furniture invoices.
Declare your activity through the INPI’s online one-stop portal within 15 days of starting the rental.
Choose your tax regime (micro-BIC or real).
Wait to receive your SIRET number.
Complete the post-registration formalities (CFE filing, professional tax account, dedicated bank account).

What Is LMNP and When Should You Set It Up?

The LMNP regime is intended for individuals renting out equipped and ready-to-live-in properties, without turning it into their main professional activity. Unlike unfurnished rentals, a furnished rental must include all essential household items, from bedding to appliances.

In most cases, LMNP leases run for 12 months, renewable, or 9 months when renting to students—making it an attractive option for students, young professionals, and mobile workers.

Be aware: if your rental income exceeds certain thresholds (notably €23,000 annually and accounting for more than 50% of your total income), you may automatically switch to the LMP (Professional Furnished Rental) regime.

How to Register Your LMNP on the INPI Portal

Since January 2023, all administrative procedures must be completed online. You must declare the start of your activity within 15 days of signing the lease or acquiring the property.

Registration Process

Create an account on procedures.inpi.fr and log in using FranceConnect+.
Begin a new procedure under “Create a business”.
Select sole proprietorship, as LMNP requires an individual business structure.
Enter your personal details, property address, and start date of the activity.
Upload all requested documents.
Validate the form with an electronic signature.

Within 1 to 3 weeks, you will receive your SIRET number, which is essential to declare rental income. Each property located at a different address requires its own SIRET.

Documents You Must Prepare

To avoid delays, prepare the following:

Identity & Address

Valid ID
Recent proof of residence

Proof of Ownership or Right to Rent

Ownership deed
Rental contract + owner’s authorization (for subletting cases)

Furniture & Equipment

Invoices for required furniture and household items

Special Cases

Indivision: additional forms + IDs of all co-owners
Residence services: contract with the operator and related documents

Organize and archive all scanned documents in a secure system for at least six years, in case of an audit.

Registration Follow-Up and Notifications

Processing time: Typically around 15 days
You will receive a confirmation email and a certificate of registration
Your INSEE notice can be downloaded from the official online platform
If mistakes occur, modifications are possible through the same portal

Mandatory Steps After You Receive Your SIRET

Once registered, you must immediately handle the following:

CFE initial declaration (form 1447-C-SD) with your local Business Tax Office.
Create a professional account on impots.gouv.fr.
Inform the tax office of your chosen tax regime (micro-BIC or real).
Open a dedicated bank account to separate rental activity from personal finances.

Costs Associated With LMNP

Setting up LMNP is nearly cost-free:

INPI registration: free
Accounting fees (recommended under the real regime): €300–€800/year
Financing costs: loan fees, insurance
Mandatory diagnostics: DPE, electricity, lead, etc.

Conditions Your Furnished Rental Must Meet

Before handing over the keys, verify that:

The property includes all required furniture
It meets the minimum decency standards
It complies with energy performance rules (G-rated properties cannot be rented in 2025)

Taxation Under LMNP

Rental income is taxed in the BIC category, under one of two regimes:

1. Micro-BIC

50% flat deduction (for classic furnished rentals) up to €77,700 income
30% deduction and €15,000 cap for non-classified tourist rentals
No deduction of real expenses

2. Real Regime

Ideal for optimization. You may deduct:

Loan interest
Insurance
Repairs & maintenance
Property tax
Co-ownership fees
Depreciation of the property and furniture

Note: Since 2025, depreciation must be reintegrated into the taxable capital gain upon sale.

Accounting Obligations

Micro-BIC

Maintain a simple revenue record
Report income via Form 2042-C-PRO

Real Regime

Full accounting (income, expenses, depreciation register)
Annual filing of Form 2031 and fiscal annexes

Financing an LMNP Investment

You may invest by:

Using a mortgage (interest deductible under the real regime)
Purchasing in indivision with co-investors

Annual Income Reporting

Each year, report your furnished rental income through Form 2042-C-PRO under the BIC category, based on the tax regime you selected.

Avoiding Common LMNP Mistakes

Beginner investors often make these errors:

Choosing micro-BIC automatically when the real regime would be more beneficial
Skipping the SIRET registration
Not reviewing the long-term property strategy (e.g., SCI structuring)
Misunderstanding the limits of depreciation
Poor bookkeeping under the real regime
Confusing LMNP and LMP thresholds

In Summary

To succeed as an LMNP landlord:

Compare micro-BIC vs. real over several projections
Understand the implications of depreciation
Register properly to obtain your SIRET
Keep impeccable accounting records
Monitor rental income thresholds
Study the local rental market carefully

FAQ About Setting Up LMNP

What is the difference between the Pinel scheme and LMNP?

The Pinel law provides an income tax reduction for renting an unfurnished property as a tenant’s main residence. LMNP applies exclusively to furnished rentals operated by non-professionals and offers different tax benefits.

Can LMNP be combined with other tax incentives?

No. LMNP advantages cannot be combined with other tax optimization schemes such as Pinel. Only LMNP rules apply to a furnished rental falling under this regime.

How do I obtain a SIRET number for LMNP?

You will receive your SIRET after declaring your activity on the INPI one-stop portal. Each furnished property located at a different address must receive its own SIRET.

How can I register my LMNP with Infogreffe?

You cannot. Since January 2023, all registrations must be completed exclusively through the INPI platform—not Infogreffe.

Can I live in my LMNP property?

Not if you want to benefit from LMNP status, as the property must be rented out. You may rent it to relatives, provided a proper lease is signed and the rent aligns with market rates. Note: tenants renting from relatives cannot receive CAF housing assistance.

Support From ESCEC International

Setting up an LMNP can be highly profitable—but the administrative, accounting, and tax steps can quickly become overwhelming.
ESCEC International assists landlords and investors with a complete range of services: LMNP registration, tax regime selection, compliance checks, accounting management, and long-term investment optimization. If you want to secure your rental activity and optimize your tax position with confidence, ESCEC International can guide you every step of the way.