Tax treatment of the professional furnished tenant (LMP)

Verified 18 February 2021 - Directorate for Legal and Administrative Information (Prime Minister)

The commercial activity of a furnished tenant may be carried out on a professional basis, in business or not, under certain conditions. The tax system for furnished commercial rentals (LMP) is reserved for residential premises containing all the movable elements necessary for normal occupation by the tenant.

To qualify as a commercial furnished apartment (LMP), the following 2 conditions must be met:

  • The annual revenue from this activity (total rents including all taxes and charges) for all members of the tax household must exceed €23,000 on calendar year. This must also be the case when the accounting year is closed in the course of the year. If an activity is created during the year, the ceiling is adjusted.
  • This revenue must be higher than the total amount of other income from the activity of the tax household (salaries, other BICs).

If one of these conditions is not met, the renter is considered to be a non-professional renter.

The professional or non-professional nature of the furnished rental is determined by the tax shelter and it must apply to all furnished rentals of the tax shelter.

The rental may be only seasonal, provided that the activity is carried out in a professional and usual manner.

The professional furniture renter is not obliged to be entered in the commercial and business register.

Please note

the activity of bed and breakfast including the provision of services (breakfast, regular cleaning of premises, supply of household linen, for example) falls under the tax regime of the para-hotelerie, not that of furnished rental.


Furnished rentals, without provision of services, are not subject to VAT: titleContent.

Income tax

Income from professional furnished rentals must be reported under one of the following schemes, depending on the legal structure chosen by the entrepreneur:

Since this is a professional activity subject to the real tax regime (except for micro-company), the following charges may be deducted from income tax (i.e. rent collected):

  • Establishment costs (notary fees, business costs in particular)
  • Maintenance and repair costs
  • Local taxes
  • Management and insurance costs
  • Interest on loans
  • Depreciation furniture and improvements (lasting 5 to 10 years, at a rate of between 10 % and 20 % per year)

Furthermore, the trader may depreciate the premises. The purchase price of real estate is not a deductible expense, but can be amortized depending on the actual holding period. If this is estimated to be 50 years, 2 % of the price of the property may be deducted during this period each year.

Deduction of deficits

Any shortfall may be deducted from the total income without any limit on the amount.

Deficits created by expenses incurred before the start of the rental can be deducted per third from the income of the first 3 years of the rental (1 third is deducted each year). This is the case when the person becomes a renter of professional furniture in the year of delivery of the building.

Exemption from disposal capital gains

Exemption is total where rental income is less than €90,000 excluding taxes (HT) during the 2 calendar years preceding the assignment. Furnished rentals must also have been in operation for at least 5 years.

Exemption is partial where such revenue is between €90,000 and €126,000 HT.

Furnished rented premises are subject to the following taxes: