The Loueur en Meublé Non Professionnel (LMNP) status has long been a cornerstone of furnished rental investment in France, and particularly in Paris real estate. For many property owners and international investors, LMNP has offered a flexible way to generate rental income while benefiting from favourable tax treatment on furnished rentals in Paris.
At 56Paris, an English-speaking real estate agency specialising in Paris property for international clients, we do not provide tax or legal advice. However, we see it as part of our role to inform buyers and owners about regulatory and legislative changes that may impact their Paris real estate investments. As part of our services, we also direct clients toward trusted tax advisors, notaires, and legal experts who can provide tailored guidance.
Recent legislative changes — with further adjustments coming into effect in 2026 — are reshaping how the LMNP framework applies in practice. While LMNP is not being abolished, its advantages for furnished rentals in Paris are evolving, particularly for short-term rentals, long-term furnished leases, and resale planning. If you own a furnished rental in Paris, or are considering buying an LMNP property, here is what you need to know.
The LMNP status remains — but the rules are changing
Despite some speculation, LMNP is not being abolished in 2026. Investors can still rent out furnished properties under LMNP as long as rental income remains below professional thresholds and the activity is not their primary occupation.
What has changed is the broader framework. Reforms now aim to reduce certain tax advantages — particularly those linked to short-term tourist rentals — while encouraging long-term residential use in high-demand cities such as Paris.
Micro-BIC: a major shift for short-term rentals
One of the most significant developments affects the micro-BIC tax regime, which many LMNP owners previously chose for its simplicity.
For non-classified furnished tourist rentals, the income threshold has been sharply reduced and the standard tax allowance lowered. As a result, the micro-BIC regime is now far less advantageous — and in many cases no longer accessible — for higher-income short-term rentals.
By contrast, long-term furnished rentals and classified tourist rentals continue to benefit from higher income ceilings and more generous deductions. This distinction is now central to any LMNP strategy.
For many Paris owners, these changes mean rethinking whether short-term letting still makes sense — or whether switching to a long-term furnished lease or the régime réel is the better option.
Amortisation now affects capital gains on resale
Another key change concerns property amortisation, historically one of LMNP’s strongest advantages.
Previously, depreciation deductions reduced taxable rental income without affecting capital gains tax at resale. From 2025 income onward (declared in 2026), this is no longer the case: amortisation taken during ownership is now reintegrated into the capital gains calculation when the property is sold, as confirmed by recent Finance Law provisions and tax authority guidance.
While amortisation still offers yearly tax relief, it can increase the taxable gain at resale — particularly for investors with shorter holding periods. In Paris, where property values and potential capital gains are high, this change makes long-term planning and exit strategy more important than ever.
Greater regulation for furnished tourist rentals
Tax reform is only part of the picture. Regulatory pressure on short-term furnished rentals has also intensified.
The Loi Le Meur and related local policies give cities like Paris the authority to enforce registration requirements, authorisation procedures, and local quotas, strengthening municipalities’ control over furnished tourist rentals. Energy efficiency and compliance rules are increasingly applied, even for short-term leases.
This means that rental profitability is no longer determined by tax treatment alone: local regulations and compliance requirements now directly affect the viability of a furnished rental investment.
More structure and administration for LMNP owners
With micro-BIC becoming less accessible for certain rental types, more LMNP landlords are turning to the régime réel. While this allows full deduction of expenses and amortisation, it also introduces stricter accounting requirements.
Owners who previously relied on simplified declarations now need to maintain detailed records and often work with a specialised accountant. LMNP is becoming more structured and hands-on — a shift that Paris investors must plan for carefully.
What this means for buyers and owners in Paris
For current owners, these changes underline that LMNP is no longer a passive tax strategy. Rental type, tax regime, energy compliance, and resale planning are now deeply interconnected.
For buyers considering an LMNP investment in Paris, clarity at the outset is essential:
* Is the property intended for long-term furnished rental or short-term tourist stays?
* Does expected income justify micro-BIC, or is the régime réel more appropriate?
* How long do you plan to hold the property, and how will amortisation affect resale taxation?
* In a regulated and competitive market like Paris, these questions are more important than ever.
A regime that still works — with the right strategy
LMNP remains a valid and effective framework for furnished rental investment in 2026. Its advantages are no longer automatic, but success depends on aligning tax planning, rental strategy, regulatory compliance, and long-term objectives.
At 56Paris, we help international clients buy, sell, and invest in Paris real estate while navigating complex regulatory and tax environments such as LMNP.
Whether you are considering a furnished rental investment, reassessing an existing LMNP property, or planning a future resale, we provide clear guidance grounded in current regulations and real market conditions. We work closely with notaires, tax advisors, and property professionals to ensure each project is structured thoughtfully and sustainably.
If you are navigating the Paris property market as a non-resident — or simply want clarity on how recent LMNP changes may affect your plans — our team is here to provide guidance at every stage.
Sources & references
This article is based on current French tax legislation and regulatory guidance, including provisions of the French Finance Law, official publications from the French tax authorities (BOFiP), and regulatory texts governing furnished tourist rentals in Paris, including the Loi Le Meur and local municipal regulations.
As regulations and tax rules may evolve and vary depending on individual circumstances, professional advice should be sought before making any investment or tax decision.