You are renting a furnished apartment and, this year, your cumulative rents exceed 23,000 euros. This threshold changes your tax status. It also triggers social obligations that many landlords discover too late. Understanding what happens concretely beyond this amount helps avoid costly adjustments.
Cross-referencing tax data and the risk of reclassification to LMP
Before even discussing status or regime, one point deserves your full attention: the tax administration now identifies exceedances much faster than a few years ago.
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Since the finance law for 2024, the tax authorities cross-reference BIC declarations (form 2042-C-PRO) with bank flows identified as rents. FICOBA data and declarations transmitted by platforms like Airbnb feed into this cross-check. A landlord who exceeds 23,000 euros in revenue without regularizing their status is exposed to reclassification and back social contributions.
To fully understand the LMNP threshold of 23,000 euros, it is important to know that this amount is assessed in gross revenue, including charges, at the level of the entire tax household.
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Recent case law from administrative courts supports this. When the exceedance is sustained and the activity shows an organized character (multiple lots, use of a concierge service, listings on multiple platforms), judges confirm the reclassification to LMP. The direct consequence: retroactive affiliation to the independent regime and URSSAF contribution calls over several years.
Transition to LMP status: the two cumulative conditions
The status of non-professional furnished rental relies on a simple logic. You remain LMNP as long as at least one of the following two conditions is met:
- Your annual rental income from furnished rentals remains below 23,000 euros for the entire tax household.
- This income remains below your other professional income (salaries, pensions, BNC, agricultural profits, management income as defined in Article 62 of the CGI).
You switch to professional furnished rental (LMP) only when both of these conditions are exceeded simultaneously. In other words, if your rents reach 30,000 euros but your annual salary exceeds this amount, you retain the LMNP status.
This nuance is often misunderstood. Many landlords think that exceeding 23,000 euros is enough to change everything. This is not the case. The second criterion, that of the predominance of rental income, acts as a safety net.
Concrete consequences of transitioning to LMP
If both thresholds are crossed, several changes apply:
- You must affiliate with the Social Security for Independents (SSI) and pay social contributions on your rental profits.
- Capital gains from sales fall under the professional capital gains regime, with different exemption rules than those for individuals.
- Deficits can be offset against global income, which can present a tax advantage if you have other high sources of income.
- Depreciation of the property remains possible, but its treatment upon resale differs.
The LMP status is not systematically unfavorable. For certain profiles, it opens up optimization possibilities. It all depends on your overall wealth situation.
Real regime and depreciation: the tax lever beyond 23,000 euros
Whether you remain LMNP or transition to LMP, exceeding the 23,000 euro threshold makes the micro-BIC regime less relevant. The flat-rate deduction of micro-BIC often does not cover the actual charges of a depreciated property.
The real regime allows you to deduct all your charges: loan interest, work, management fees, insurance. It especially allows for the depreciation of the property and furniture. In practice, you spread the acquisition cost over several years, which reduces your taxable profit.
Specialized accountants in furnished rentals observe a clear trend: the real regime often neutralizes income tax thanks to depreciation, even with revenues significantly exceeding 23,000 euros. The fiscal result can remain close to zero for many years.
This mechanism has a counterpart. You enter a quasi-professional logic. Maintaining compliant accounting, producing a balance sheet and income statement, frequent recourse to an accountant. Management costs increase, but generally remain lower than the tax savings achieved.
Family SARL and legal structuring for landlords exceeding the threshold
When rental income sustainably exceeds the threshold, some landlords choose to structure their activity through a family SARL taxed under personal income tax. This arrangement allows them to combine the advantages of the real regime (depreciation, deduction of charges) with regulated wealth management.
Why this option rather than a classic SCI? The SCI subject to corporate tax does not allow for the same treatment on depreciation upon resale. The family SARL, provided that all partners are members of the same family, remains taxed under personal income tax in the BIC category.
This choice does not suit all profiles. It assumes a significant rental investment, with multiple properties, and a desire to pass on the wealth within a family framework. Legal structuring should be decided before exceeding the threshold, not after, to avoid reorganization costs and tax friction.
Regularize before the administration does
If your revenues have already crossed the threshold without you adjusting your situation, the priority is to regularize voluntarily. Registration in the trade register, affiliation with the SSI, and transitioning to the real regime can be done during the year.
Waiting for a control exposes you to increased penalties and back contributions over several years. A voluntary regularization limits late interest and demonstrates your good faith to the administration.
The 23,000 euro threshold is not a trap, but a signal. It indicates that your furnished rental activity has taken on a dimension that requires an appropriate tax and legal framework. Anticipating this shift, ideally with a specialized BIC accountant, remains the best way to turn this constraint into a lever for wealth optimization.