LMNP scheme

Investing with the LMNP law (French leaseback)



Bouvard Censi, LMNP 2011 scheme (Loueur Meublé Non Professionnel/French leaseback)



This measure applies to the LOUEUR EN MEUBLE NON PROFESSIONNEL (LMNP)/ NON PROFESSIONAL FURNISHED LETTING (French leaseback). The acquisition of the property is restricted to individuals and can only be carried out in ownership.


The principals of the Bouvard Censi amendment

  • Acquisition of accommodation located in official tourist residences, student residences or residential services.
  • The property must be a furnished letting and leased by an operator of the residence for a minimum of 9 years.
  • Guaranteed rent through the commercial lease for 9 years.


Fiscal advantages of the LMNP law 

  • VAT recovery (20%) on the sum of the purchase (new housing).
  • Tax recovery of 11% on the investment before tax in the case of an acquisition before 31/12/2015. Spread over 9 years.

Flexibility:


If the attributed tax reduction for the current year exceeds the amount owed by the taxpayer, the difference may be deducted from the income tax in following years (up to 6 years included).


Obligations under the LMNP law


  • The property must be a furnished letting and be leased by an operator of a residence for a minimum of 9 years.
 Tax incentive investment Purchase resale