The non-professional furnished rental status is designed for new buyers who want to rent their mobile home. In order to choose the best tax regime, here is a short guide to the concept and advantages of LMNP status.
LMNP status: what is it?
If your property, furnished and equipped, takes the form of an apartment or a mobile home, you can opt for the LMNP regime and rent it out. From a legal and tax perspective, the presence or absence of furniture is very important. Indeed, if the accommodation is unfurnished, the income received is based on property income. On the other hand, if you choose a furnished rental, the income belongs to industrial and commercial profits (BIC).
In order to benefit from LMNP status, the regulations impose an annual ceiling of 23,000 euros for rental income. In addition, these must not exceed the total salaries and income of your tax household.
The advantages of choosing LMNP status
When you are required to declare your rental income, you will have to choose between two tax regimes, namely the micro-BIC tax regime and the real and simplified tax regime.
The micro-BIC plan offers you an automatic reduction of 50%, calculated on the tax base. As for the real and simplified tax regime, it allows you to remove all the costs that you have expected during your activity as a non-professional furnished rental company. In addition, you can also recover VAT on the purchase of the mobile home and its equipment.
Choosing the best tax regime
In order for the investment to be profitable, it is important to choose the tax regime carefully. Since the objective is to obtain a fairly light tax base, it is advisable to follow the trend of mobile home owners, namely a real and simplified tax regime. You should know that the majority of owners choose this regime in order to recover the 20% VAT on the value of the property. In addition, annual charges, including the rental amount of the plot, are not included in the tax base. However, the adoption of LMNP status requires the support of an expert agency in the field. There you will find specialists who can give you more information on the differences between the two regimes, especially if you have not yet purchased a mobile home. With the help of professionals, you will avoid encountering difficult cases, such as illegal clauses, the impossibility of renting or reselling the property, or even neglected security and insurance estimates.