The threshold of 23,000 euros in rental income from furnished properties not only triggers a change in tax status. It also modifies the social base, the depreciation strategy upon resale, and, since the finance law for 2025, the calculation of capital gains. Here, we detail the technical mechanisms that this crossing activates.
Social contributions after exceeding the threshold of 23,000 euros in furnished rentals
Exceeding 23,000 euros in annual income from seasonal rentals triggers a mandatory affiliation with Urssaf. This obligation also applies to non-professional furnished landlords, not just LMPs.
We observe that many landlords discover this constraint late. The lack of affiliation exposes them to a reassessment that accumulates unpaid contributions and late penalties. Falling back below 23,000 euros the following year does not retroactively erase the obligation that arose in the year of exceeding the threshold.
An aspect that is regularly underestimated concerns the LMNP 23000 ceiling, assessed at the level of the entire tax household. The administration aggregates all the furnished income of the household and then compares it to all declared activity income. A couple where one member goes part-time, takes a leave, or retires can switch to LMP without having increased their rents.
Transition from LMNP to LMP: double tax condition at the household level
The transition to professional furnished landlord status is based on two cumulative criteria, reassessed each year. The household’s furnished rental income must exceed 23,000 euros gross and represent more than half of the household’s activity income.
The base considered is based on gross income: collected rents, including re-invoiced charges. Neither deductible charges nor depreciation are included in the assessment of the threshold. This framework is established by Article 155, IV of the General Tax Code.
The transition to LMP produces two direct effects:
- Liability for social contributions on all profits from the furnished activity, replacing social levies on property income
- Possibility to offset deficits against global income without limitation, whereas in LMNP they can only be offset against furnished BIC for the next ten years
We recommend simulating each year the ratio of furnished income to household activity income. A transition to part-time work, retirement, or cessation of activity of a spouse is enough to trigger an unanticipated switch.
Real regime and micro-BIC: recalibration of thresholds since 2025
For unclassified tourist rentals, the micro-BIC has become very unfavorable. The ceiling has been reduced to 15,000 euros, with a deduction capped at 30%. A landlord who exceeds approximately 1,000 euros in monthly rents mechanically exits this regime.
The real regime then becomes the only option. It allows for the deduction of all charges (loan interest, work, insurance, management fees) and the depreciation of the property as well as furniture. The accounting advantage is clear, but maintaining accounting compliant with BIC requires specialized software or the assistance of an accountant.
For classified furnished rentals and guest rooms, the thresholds and deduction rates have been recently modified. The new scales apply to income received since January 1, 2025. Any landlord who operated a classified furnished rental under micro-BIC with the old thresholds must check if they remain eligible.
LMNP depreciation and capital gains upon resale: the tax trap of 2025
The most structural reform for landlords close to the 23,000 euro threshold concerns the reintegration of depreciation into the calculation of capital gains. Since February 15, 2025, for the sale of properties in LMNP, the capital gain is calculated by reducing the acquisition price by the amount of depreciation claimed.
In practice, a landlord who has depreciated their property for several years will see their taxable base upon resale increase accordingly. The annual tax advantage obtained through depreciation is partially recovered at the time of sale. Certain managed residences (student, senior, medical-social) benefit from exceptions to this rule.
This measure modifies the wealth strategy. Accumulating depreciation is no longer tax-neutral upon resale. A landlord approaching the LMP threshold must decide between continuing to depreciate under the real regime, which reduces current tax but increases future capital gains, and voluntarily limiting their income to remain in LMNP.
The conjunction of the LMP transition and the reintegration of depreciation creates a zone of tax risk for households whose furnished income hovers around 23,000 euros. The decision to rent an additional property or increase rents must incorporate these two parameters into a multi-year projection, not just in the profitability calculation for the current year.