LMNPs and the 2025 Finance Law: what’s changing?

The Le Meur Law, also known as the ‘anti-Airbnb law’ was passed in November 2024 and has introduced new obligations for owners of furnished tourist rentals. From this point forward, all property owners wishing to rent out their property seasonally must report this beforehand on a dedicated national online platform. This declaration, which includes information on the accommodation being rented, is forwarded to local authorities, so they can check it.

In addition, the rates and thresholds for the micro BIC scheme have been revised downwards: the tax deduction for unclassified accommodations has been reduced from 50% to 30%, with a cap on turnover set at €15,000, while for accommodations classified as ‘furnished tourist rentals’ (meublés de tourisme), the tax deduction has been reduced from 71% to 50%, with a cap of €77,700.

👉To find out more, read our article on the impact of the anti-Airbnb law on seasonal rentals

Depreciation once again included in the calculation of capital gains

The 2025 Finance Law introduced the reinclusion of tax-deducted depreciation into the calculation of capital gains for LMNPs, reducing the advantage of furnished rentals, which nevertheless remain attractive compared to unfurnished rentals.

This measure, which applies to all sales finalised after the law has been enacted, significantly increases the taxable capital gains base. For example, a property bought for €250,000 and sold for €325,000 will see its gross capital gain increase considerably if the depreciation that had been deducted is included once more. This reform reduces the tax benefits of the furnished property scheme, which nevertheless retains its advantages, particularly in terms of deducting expenses and depreciation.

It does not apply to certain types of investments (student residences, senior residences, etc.) or, for the time being, to furnished-rental property owners who have exclusively used the micro scheme.

Elimination of the tax cut for enrolling with a small business accounts centre

Until now, enrolling with a small business accounts centre has enabled private-practice professionals (professionnels libéraux), shopkeepers, craftsmen, farmers and furnished-rental property owners subject to the non-presumptive tax regime (régime réel) to benefit from a tax cut equivalent to two thirds of the expenses they incurred for accounting, up to a limit of €915 per year.

With the adoption of the 2025 Finance Law, this scheme will come to an end for financial years ending on 31 December 2024, which represents the loss of a slight tax advantage for all taxpayers who have benefited from this scheme up to now.

Lowering the basic VAT exemption threshold

Property owners subject to VAT (commercial leases or short-term serviced accommodation [parahôtellerie]) could opt for the basic exemption threshold, i.e., not to subject their income to VAT or be able to deduct VAT on expenses when annual turnover for the Y-1 had been less than €37,500 or €85,000 depending on the type of business.

The basic VAT exemption threshold was lowered to €25,000 for all business activities, including furnished rentals and short-term serviced accommodations, by the Finance Law. However, the application of this measure has been suspended until 31 December 2025, pending the conclusions of the meetings organised by the Minister of Commerce. Stay tuned for more on this topic.

Conclusion: is investing in LMNPs it still worth it in 2025?

The Le Meur Law has rendered the micro BIC scheme for seasonal rentals less attractive, making the non-presumptive scheme even more attractive.
The Finance Law has reduced the advantages related to the furnished property regime when a property is resold, but renting out property furnished is still more attractive than doing so unfurnished over the lifetime of your investment.
In conclusion, even if they have to be taken into account when calculating overall profitability, we don’t think these changes should dissuade investors from investing in furnished rentals (seasonal, long-term, serviced residences, etc.).
In short, furnished rentals are being taxed more heavily than in the past, but are still advantageous compared with other types of rentals.
Owners are free to choose the tax regime (micro BIC or non-presumptive BIC) best suited to them depending on their circumstances.
Furnished rentals still offer some valuable benefits:

• Flexibility and variety of legal lease agreements to choose from (commercial leases, long-term residential leases, student or seasonal leases or overnight seasonal rentals).
• Deduction of all expenses relating to the rental business.
• Taking into account the depreciation of the building and furnishings, which significantly reduces your taxable income throughout the rental period (non-presumptive regime).
• The capital gains tax regime for private individuals reselling an LMNP still allows for a deduction based on the length of ownership, resulting in total exemption from capital gains tax after 22 years (30 years for social security contributions).

Other developments are likely to follow in the coming months (VAT, status of private landlords, etc.), and we will make sure to keep you updated.