Under the French LMNP (Non-Professional Furnished Rental) real tax regime, renovation and maintenance expenses fall into three distinct tax categories that must be clearly understood to optimise your BIC tax return. Routine maintenance and repair work — repainting, plumbing, replacing defective fixtures, or refurbishing the property between tenancies — is immediately deductible from taxable income in the year the expense is incurred. Lasting improvement works — full bathroom renovations, new high-performance boilers, major insulation, or complete window replacements — must instead be capitalised and depreciated over several years according to the nature of the asset. Construction, reconstruction, and extension works are subject to specific capitalisation rules and are neither immediately deductible nor depreciated under standard conditions. Furniture and household appliances follow a similar logic: items with a significant useful life (bedding, kitchen appliances, storage furniture) are depreciated rather than immediately deducted. Work carried out before the property is first rented can be incorporated into LMNP accounting records, provided it is directly linked to the future rental activity. Meticulous invoice retention and guidance from a qualified accountant are essential to ensure the correct tax treatment of each expense.
Carrying out renovation work is often essential to maintain or enhance a furnished rental property. However, from a tax perspective, not all expenses are treated the same way. Under the French LMNP (Non-Professional Furnished Rental) status, some expenses are immediately deductible from rental income if you are subject to the real tax regime, while others must be depreciated over several years. Finally, certain types of work are neither immediately deductible nor depreciated under the same conditions.
Understanding this distinction is essential to optimize your tax position, avoid mistakes when filing your BIC (Industrial and Commercial Profits) tax return, and maximize the profitability of your property investment. To better understand how the LMNP regime works, you can also read our guide on furnished rental taxation and tax exemptions.
In this comprehensive guide, discover which renovation expenses are deductible under the LMNP regime, which must be depreciated, the rules applicable to work carried out before the property is first rented, and the best practices for optimizing your accounting in 2026.
Unlike income from unfurnished rentals, income from furnished rentals is taxed under the Industrial and Commercial Profits (BIC) category.
There are two tax regimes:
It is under the real tax regime that the distinction between deductible expenses and depreciable assets becomes particularly important.
An expense cannot be both immediately deducted and depreciated. Its tax treatment depends on its nature and its impact on the property.
Maintenance, repair, and servicing expenses are generally considered deductible operating expenses when they preserve the property in good condition without altering its structure or significantly increasing its value.
The most common deductible expenses include:
These expenses are considered operating costs of the rental activity and reduce the taxable profit for the year in which they are incurred.
It is essential to keep all invoices to justify these expenses in the event of a tax audit.
Conversely, certain works provide a lasting improvement to the property or create a new asset with a useful life extending over several years.
These expenses are generally capitalized and depreciated.
This may include:
Depreciation consists of spreading the cost of these investments over their expected useful life instead of deducting the full amount in the year the work is completed.
Depending on the type of asset, the depreciation period may range from a few years to several decades.
This approach provides regular tax savings over multiple accounting years.
Construction, reconstruction, and extension works are not considered deductible expenses.
Examples include:
These expenses permanently increase the value of the property and are subject to specific capitalization rules.
Yes, under certain conditions.
Work carried out before the first rental can be taken into account provided it is directly related to the future furnished rental activity.
In practice, the French tax authorities allow certain expenses incurred before the start of the rental activity to be included in the LMNP accounting records.
The tax treatment nevertheless depends on the nature of the expenses:
It is recommended that these works be carried out within a reasonable period before the start of the rental activity and that all invoices be carefully retained.
Furniture is a specific feature of furnished rentals.
Furniture, household appliances, bedding, lighting, and certain other equipment are generally not immediately deductible when they have a significant useful life.
Instead, they are usually capitalized and depreciated over their expected lifespan.
This typically includes:
Small, low-value items may benefit from different accounting treatment depending on their purchase price.
Under the real tax regime, renovation work is not the only deductible expense.
Property owners may also deduct:
All these expenses contribute to reducing the property's taxable profit.
The declaration depends on the tax regime chosen.
No actual expenses are deductible.
The landlord simply benefits from the standard tax allowance provided by the applicable regulations.
All expenses must be recorded in the accounting records of the rental activity.
Operating expenses are deducted according to their nature.
Capital assets are recorded on the balance sheet and depreciated.
Using a qualified accountant is often recommended to ensure the correct tax treatment of renovation work and compliance with reporting obligations.
Before undertaking renovation work, it is advisable to identify its tax classification.
A few best practices can help optimize your tax position:
Tax optimization is not limited to renovation work. Understanding the various tax exemptions and available schemes can also help reduce your tax liability.
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