Selecting a language will automatically trigger the translation of the page content.

Professional Furnished Lessor (LMP) Tax System

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

The commercial activity of furnished rental may be carried out in a professional capacity, whether in a company or not, under certain conditions. The tax regime for professional furnished rental (LMP) is reserved for residential premises with all the furniture necessary for a normal occupation by the tenant.

To be a professional furnished rental company (LMP), the following 2 conditions must be met:

  • The annual income from this activity (total rents including taxes and charges) by 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 during the year. In case of creation of activity during the year, the ceiling is adjusted.
  • These revenues must exceed the total amount of other business income of the tax household (salaries, other BICs).

If any of these conditions are not met, the lessor is considered to be a non-professional rental.

The professional or non-professional character of the furnished rental is determined by tax centre and it must apply to all furnished rentals in the tax home.

Rental may only be seasonal, as long as the activity is carried out in a professional and usual manner.

The professional furnished rental company is not required to be registered in the commercial and corporate register.

Please note

the bed and breakfast including services (breakfast, regular cleaning of premises, provision of household linen, for example), is subject to the tax regime of the para-hotel, not of the furnished rental.


Furnished rental without service is not subject to VAT: titleContent.

Income tax

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

As this is a professional activity subject to the actual taxation regime (except for micro-enterprises), the following expenses may be deducted from tax income (i.e. rent collected):

  • Establishment fees (notary fees, incorporation fees in particular)
  • Maintenance and repair costs
  • Local taxes
  • Management and insurance costs
  • Loan interest
  • Depreciation furniture and improvements (lasting 5 to 10 years, with a rate between 10% and 20% per year)

Furthermore, the trader can practice depreciation of the premises. The purchase price does not constitute a deductible charge, but can be amortised according to the actual duration of the holding. If the value of the property is estimated at 50 years, 2% of the price of the property may be deducted during that period each year.

Deficit Deduction

Any shortfalls can be deducted from the total income without any amount limitation.

Deficits created by expenses incurred before the start of the lease can be deducted by third party on the income of the first 3 years of the lease (1 third is deducted each year). This is the case when the person becomes a professional furnished tenant in the year of delivery of the building.

Exemption from transfer capital gains

The exemption is total where rental income is less than €90,000 excluding taxes (HT) in the 2 calendar years preceding the transfer. It is also necessary that the activity of renting furnished has started for at least 5 years.

The exemption is partial where such revenue falls within €90,000 and €126 000 HT

Furnished rented premises are subject to the following taxes:

To small and medium-sized and micro-entreprises, do you have a business project, a difficulty or a question ?

Quick and simple public service: you will be contacted over the phone by one of our experts.

Speak with an advisor on Place des Entreprises