Taxes: the LMNP (private landlord) status to save money

Additional income with no extra tax

Whilst some tax efficiency schemes require you to make a decision before the end of the calendar year, it must be noted that lots of taxpayers end up being too late to benefit from tax relief. For those who are late and looking for long-term security that gives them a substantial additional income without increasing their tax burden, the LMNP status represents a real opportunity, provided that you choose the appropriate tax regime.

Choosing the right tax regime: régime micro-bic or régime réel ?

Investors have the choice between two tax systems when declaring their income from a furnished rental property: the '' régime micro BIC' system and the '' régime réel''. Whilst the ''régime micro BIC'' system is selected by the majority of landlords leasing properties (in 85% of cases), the ''régime réel'' allows you to make even greater tax savings..

• The régime micro-bic: if the household income from a furnished rental is less than or equal to €32,900, the régime micro-bic will apply by default. An allowance of 50% (71% if the apartment is a tourist rental property) is then offered on the total sum of rent collected.

• The régime réel simplifié: if the income from a rental property is in excess of €32,900, then the régime réel simplifié will also apply by default. In this case, it is possible to reduce different charges from the declared income, such as the property tax, maintenance and utility bills, professional management fees, insurance, mortgage interest, repairs and even subscriptions to electricity, internet providers etc. On top of these reductions, the régime réel simplifié allows you to amortise the value of your property and its furniture. This scheme enables you to gradually reduce the fiscal burden to €0 and to supplement your income without paying additional tax.

To help you choose the most advantageous tax regime, jedeclaremonmeuble.com offers a free simulator that will calculate the total amount of tax based on the two systems and your individual circumstances (property value, expenses, rental income).

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