LMP 2026: the professional furnished landlord status explained

The LMP (Loueur Meublé Professionnel — professional furnished landlord) status is often described as the "big brother" of LMNP. It offers specific tax advantages — unlimited offset of deficits against global income, capital gains exemption under certain conditions, TNS social security status — but it imposes significant constraints and requires close attention to the threshold triggers. In 2026, it is also the regime most heavily affected by TNS social contributions, which replace the standard social charges (prélèvements sociaux) applicable to LMNP.

Who qualifies as LMP? The two cumulative conditions

LMP status applies only if both of the following conditions are met simultaneously (art. 155 IV of the French Tax Code — CGI):

1. Furnished rental receipts > €23,000/year (across all members of the tax household)
2. These receipts exceed the other professional income of the tax household (wages, BIC, BNC, retirement pensions — but not income from assets such as rental income or dividends)

If either condition is not met, you are LMNP. LMP is not an option: it is a status that applies by operation of law as soon as both thresholds are crossed simultaneously.

LMP vs LMNP: the key differences

The main LMP advantage: unlimited global deficit offset

Under the LMNP actual-expenses regime (régime réel), BIC deficits (excluding depreciation) can be carried forward against LMNP profits over the following 10 years — but never against global income. Excess depreciation becomes ARD (deferred depreciation — amortissements reportés différés), with no time limit, but usable only against future furnished rental income.

Under LMP, the BIC deficit — including the portion arising from depreciation — is immediately offsettable against all global income of the tax household, without any cap. For a household with a marginal tax rate (TMI) of 41% or 45%, an LMP deficit of €20,000 generates a tax saving of €8,200 to €9,000 in the current year.

Example — LMP investor, 41% marginal rate:

Under LMNP, this €4,000 deficit would be locked as ARD and would not reduce the current year’s income tax bill.

TNS social contributions: the downside of LMP

This is the point most frequently underestimated by investors who switch to LMP. Under LMNP, income is subject to social charges (prélèvements sociaux) at 18.6% (LFSS 2026) calculated on taxable profit — which is often nil thanks to depreciation.

Under LMP, income falls under the social security regime for self-employed workers (Travailleurs Non Salariés — TNS), affiliated to the Sécurité Sociale des Indépendants (SSI). TNS contributions include:

• Sickness and maternity cover
• Basic and supplementary pension
• Disability and death cover
• Vocational training

The overall TNS contribution rate is variable depending on income, but generally falls between 35% and 45% of net profit. Minimum flat-rate contributions of approximately €1,200/year are due even when profit is nil or negative — unlike LMNP social charges, which are nil when profit is nil.

LMP capital gains: the professional regime and art. 151 septies

The sale of a property held under LMP falls under the professional capital gains regime (not the private individual regime). This regime is very different.

Full exemption — art. 151 septies of the CGI

If the LMP activity has been carried on for at least 5 years and annual receipts are below €90,000, the capital gain is fully exempt from income tax. TNS contributions may however still be due on the portion of the gain reintegrated into the BIC result — this depends on the structure of the disposal and should be verified with an accountant. This is the flagship advantage of LMP for smaller portfolios.

Between €90,000 and €126,000 in receipts, a partial tapering exemption applies.

Above €126,000 in receipts

The capital gain is taxed under the professional capital gains regime. The distinction between short-term (≤ depreciation period) and long-term (> depreciation period) applies:

• Short-term capital gain: reintegrated into the BIC result → taxed at income tax rates + TNS contributions
• Long-term capital gain: taxed at 12.8% income tax + TNS contributions (not social charges at 17.2%) — with no taper relief for length of ownership

IFI and LMP: exemption for professional assets

Properties assigned to an LMP activity are treated as professional assets and are therefore exempt from the IFI (Impôt sur la Fortune Immobilière — French wealth tax on real estate) — provided that the LMP activity is the principal activity of the household and the conditions of art. 975 of the CGI are met.

For a substantial property portfolio, this exemption can represent a significant saving (IFI = 0.5% to 1.5% of net taxable assets above €1.3 million).

LMP and retirement: social entitlements in return

Unlike LMNP (where social charges build no entitlements), TNS contributions under LMP do build rights:

• Basic state pension: CNAV points (equivalent to the general employee regime)
• Supplementary pension: CIPAV or SSI depending on the activity
• Social cover: sickness and maternity, disability

For an investor who has left salaried employment to manage a furnished property portfolio, LMP can provide social cover comparable to that of a self-employed worker.

When does LMP become relevant?

Switching from LMNP to LMP: what changes in practice

The switch to LMP is not an option to elect — it applies automatically in the year both thresholds are crossed. In practice:

1. Tax return: your BIC income is now classified as "professional" — the relevant declaration box changes (form 2042-C-PRO, professional BIC section)
2. SSI affiliation: you must register with the Sécurité Sociale des Indépendants if you have not already done so
3. TNS contributions: the contribution notice is issued the following year based on the year N-1 profit (with subsequent adjustment)
4. Bookkeeping: same regime as LMNP actual-expenses (form 2031 filing is required in practice)

What RentValo calculates for LMP

On RentValo, the LMP simulation includes:

• Calculation of the BIC result and its offset against global income in the event of a deficit
• Comparison of LMNP actual-expenses vs LMP on the same property
• Capital gains tax at 10 and 20 years and at the end of the loan (art. 151 septies exemption or professional capital gains regime)
• Indication of the LMP threshold relative to the receipts entered

The analysis is a decision-support tool. The LMP status involves significant tax and social security decisions — consult an accountant and/or a wealth management adviser before making any change of strategy.

FAQ

Final comparison table

In summary

LMP is a powerful regime for investors whose primary activity is furnished letting, with a high marginal tax rate and a long-term wealth-building objective. Its advantages — unlimited global deficit offset, capital gains exemption under art. 151 septies, IFI exemption — are real but conditional.

Its principal constraint — TNS contributions, 2 to 2.5 times higher than LMNP social charges — must be factored into the profitability calculation from the outset.

For most property investors who retain a primary professional activity, the LMNP actual-expenses regime offers a better balance between tax efficiency and social simplicity. LMP comes into its own when furnished letting becomes the household’s dominant activity.