LMNP Real vs Micro-BIC Furnished Rental Tax Simulator

French LMNP: micro-BIC vs real regime, tax and depreciation

Under the French micro-BIC regime, half of the rent is taxed at your marginal income tax rate plus 18.6% social levies. Under the real regime, the tool deducts actual expenses, then depreciation (building and works over 25 years excluding land, furniture over 6 years), which can bring taxable profit down to zero but never below. The gap between the two tax bills is the annual saving of the real regime.

The tool's two calculations

• Micro-BIC: tax = annual rent × 50% × (marginal rate + social levies).
• Real regime: profit = rent − (condominium fees + property tax + loan interest + landlord insurance + accountant). Annual depreciation = (purchase price + notary fees + works) × (1 − land share) ÷ 25 + furniture ÷ 6. Depreciation used never exceeds the profit; the excess is carried forward with no time limit.

Default example

Property bought for €180,000, €14,000 of notary fees, €10,000 of works, €8,000 of furniture, land at 15%, rent of €850 over 12 months, 30% marginal rate. Rent: €10,200. Under micro-BIC the taxable base is €5,100 and the tax €5,100 × 48.6% = €2,479. Under the real regime, expenses total €4,830, profit before depreciation is €5,370 and available depreciation €8,269 (€6,936 building, €1,333 furniture): tax drops to €0 and €2,899 of depreciation is carried forward.

Assumptions and limits

• The micro-BIC ceiling is not checked (€77,700 of receipts for long-term or classified furnished lets, 2025 income); unclassified tourist lets (30% allowance, €15,000 ceiling) are not handled.
• The accounting-fee tax reduction no longer applies from 2025 income; fees remain a deductible expense.
• On resale, depreciation deducted since purchase is added back to the capital gain (sales from 15 February 2025); the tool does not compute this.
• These are French rules. The result is an estimate and does not replace advice from an accountant.

Sources and dates: 18.6% social levies on furnished rental income, French Social Security Financing Act for 2026 (Act 2025-1403 of 30 December 2025, article 12), from 2025 income; micro-BIC ceilings and allowances for 2025 income, impots.gouv.fr (page updated 8 April 2026); repeal of the accounting-fee reduction (article 199 quater B CGI) by the 2025 Finance Act, article 11, from 2025 income; depreciation add-back, 2025 Finance Act, article 84, sales from 15 February 2025 (checked 14/10/2026)

Frequently Asked Questions

When does the LMNP real regime beat micro-BIC?

As soon as your deductible expenses plus depreciation exceed the flat 50% allowance on rent. In the default example, €4,830 of expenses and €8,269 of depreciation exceed the €5,100 allowance, so tax falls from €2,479 to €0.

What social levy rate applies to furnished rental income in France?

18.6% (including 10.6% CSG) from 2025 income onward, under the Social Security Financing Act for 2026. Unfurnished lettings stay at 17.2%. The simulator uses 18.6% by default and you can change it.

Can LMNP depreciation create a loss I can offset against other income?

No. Depreciation can only bring the result down to zero; any unused part is carried forward to later years with no time limit. The simulator applies this rule and never shows a negative result.

What happens to depreciation when I sell the property?

For sales completed since 15 February 2025, depreciation already deducted reduces the acquisition price used for the capital gain, which raises the taxable gain before holding-period allowances. Some serviced residences (students, seniors) are excluded. This simulator does not compute the capital gain.

Is this tool really free?

Yes, all tools on Kristools are 100% free and accessible without registration.

Is my data protected?

Yes. All processing is performed directly and securely inside your browser. No personal data is sent to our servers.