If you rent a furnished property under the status of Non-Professional Furnished Rental (LMNP), the declaration LMNP is an essential step to comply with tax requirements.
Renting in LMNP involves specific procedures, including registration with the Commercial Court Registry, choosing the tax regime, and filling out the P0i form. We present all the steps for a simple LMNP declaration!
Why is the LMNP declaration mandatory?
When you rent a furnished property under LMNP, your rental income is taxed in the category of Industrial and Commercial Profits (BIC). Although this does not make you a professional in the strict sense, the State considers you to be engaging in a commercial activity. The LMNP declaration is therefore necessary to comply with tax regulations and to benefit from the advantages of the status.
The steps of the LMNP declaration
1. Registration with the Commercial Court Registry
The first step to declare your LMNP is to register with the Commercial Court Registry competent for the property you are renting. This process allows you to:
Declare your furnished rental activity,
Obtain a SIRET number,
Choose your tax regime, micro-BIC or actual regime.
If you own several properties under LMNP, the place of registration is determined by the property generating the highest rental income.
2. Fill out the P0i Form
The P0i LMNP form is essential to officialize your registration and declare your furnished rental activity. You can download it from the website of the Directorate General for Enterprises or request it directly from the Commercial Court Registry. Here are the information to provide:
Start date of activity : This can be the date of rental commencement or, if work has been done beforehand, the purchase date may be preferred, allowing for the deduction of certain expenses under the actual regime.
Chosen tax regime : Indicate whether you opt for the micro-BIC or the actual regime.
VAT option : Furnished rental without services is not subject to VAT, so the “franchise en base” option is generally retained.
3. Choosing the Tax Regime: Micro-BIC or Actual Regime?
In your LMNP declaration, the choice between the micro-BIC and the actual regime is crucial for optimizing your taxation:
Micro-BIC : This regime offers a flat-rate allowance of 50% on your rents received (up to €70,000 in annual rental income).
Actual regime : Often preferred for LMNP, this regime allows you to deduct from your rental income the expenses (interest on loans, works, management fees) and the depreciation of the property and furnishings, reducing the taxable profit.
At Beanstock, we assist you with your LMNP declaration, so there's no need to travel; we take care of everything.
LMNP declaration in joint ownership: The FCMB form
If you own the property in undivided ownership (for example, in a common-law union, under the separation of property regime), the procedure differs slightly. You will need to fill out the FCMB form (Cerfa 11924*01) instead of the P0i form to declare the activity in the name of the undivided ownership.
Catch-up of LMNP declaration: Regularize your situation
Although the LMNP declaration is mandatory, some owners omit filling out the P0i form. It is possible to regularize one's situation retrospectively, but it is better to comply quickly to avoid penalties and the Business Property Tax (CFE) that might be due.
If in doubt, contact your tax center to regularize your situation calmly.
The steps following the LMNP declaration
You have submitted your documents and registered your LMNP activity, all that remains for you to do is:
Create a professional space on impots.gouv.fr to manage your tax obligations online, including the payment of CFE each year.
Maintain meticulous accounting records if you have opted for the real regime. You can rely on an accountant to simplify your declarations.
Once again, Beanstock takes care of all the accounting management for its clients who have subscribed to the accounting management service.
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