TAX SYSTEM

- The "Professional Furnished Rentals" system (LMP Status)* -

Allowing you to have a protected complementary income

How it works:

You are obliged to rent your property furnished and to sign up to a commercial lease with TERRESENS.

The amount of your rent needs to be above €23,000 gross, or over 50% of your income needs to come from your rental activity.

You need to sign up with the Chamber of Commerce and Companies as a Professional in the "furnished rentals" category.

The rental income comes under the category of "Industrial and Commercial Profit".

- The "Non Professional Furnished Rentals" system (LMNP Status)** -

How it works:

You are obliged to rent your property furnished and to sign up to a commercial lease with TERRESENS.

The amount of your income needs to be less than €23,000 gross.

The rental income comes under the category of "Industrial and Commercial Profit".

- Comparisons of the advantages between LMP/LMNP -

* LMP

** LMNP

You recuperate the VAT.

You can deduct your deficits (mortgage interest, notary fees, land tax, real estate and furniture depreciation) from your net taxable income.

You are exempt from capital gains after the 6th year in the event that you sell your property.

You are exempt from ISF on your property (wealth tax).

You benefit from social cover.

You recuperate the VAT.

You can deduct your deficits linked to the rental of the property (notary fees, land tax, mortgage interest, furniture depreciation) and also on the rental income itself.

If you therefore chose a mortgage to finance your investment, your rental income is totally net.