👉 The 2025 Finance Act modifies the𝐜𝐚𝐥𝐢𝐭é 𝐝𝐮 𝐋𝐌𝐍𝐏 upon resale of the property
✔️The calculation of capital gains realized by professional (LMP) and non-professional (LMNP) furnished property landlords has been standardized.
👉 Reminder: The LMP regime applies to individuals who:
✔️Have income from furnished rentals within the tax household that is >23,000€
AND
✔️Income from furnished rentals is > to the tax household’s professional income
❗ Otherwise, the LMNP tax regime applies.

👉The LMP and LMNP tax schemes are very attractive because they allow you to depreciate the property to eliminate all or part of the taxable rent.
❗Unlike the property income tax regime for unfurnished rentals, which does not allow for depreciation of the property.

👉If the property is resold, the LMNP owner is eligible for tax deductions based on the length of ownership for individuals:
✔ Capital gains tax exemption after 22 years of ownership
✔ Exemption from social security contributions after 30 years

🤨 Before the 2025 Finance Act: Individuals were not required to add back depreciation
✔ Going forward, the calculation of capital gains for LMNP properties will be aligned with that for LMP properties, with depreciation added back to the acquisition price, thereby increasing the taxable capital gains base
✔The capital gain will now be calculated as follows: Sale price – Net book value (Purchase price – Depreciation)
❗ However, the tax rate remains at 19% for income tax plus 17.2% in social security contributions

👍 The FareWell team has always specialized in furnished rentals. We’re here to help and offer advice.