I bought an apartment in Morzine in early 2026 to rent out seasonally. While preparing my first LMNP tax return, I realised I had no idea what was happening on the tax side — and nobody had spontaneously explained it to me. Here's what I learned, with a calculator to test your own numbers.
My beginner's reflex: maximise occupancy. Fill the calendar. Take in as much as possible. It's a mistake many LMNP owners make without realising.
Under the régime réel simplifié, you have each year a LMNP tax threshold(technically called the seuil d'indifférence fiscale) — the level of rental income beyond which every extra euro you earn costs you tax. This threshold depends on your actual expenses and your depreciation allowances.
Beyond this threshold, each euro rented out is taxed at your marginal rate — roughly 30 to 45% combining income tax and social charges, depending on your situation. On a week at €800, you could be handing €240 to €360 straight to the tax office.
💡 The question to ask before every booking
Since calculating my threshold, I know exactly from which week of the year I'm working for the tax office. A Christmas week at €2,500 nets only €1,500 after tax if you're above your threshold — 40% goes to the state. Knowing this changes how you balance renting against enjoying your own property.
🧮 Calculate your tax threshold
Enter your numbers to find out at what rental income level you start paying LMNP tax — and simulate the 2025 Finance Act impact at resale.
My LMNP tax threshold
Indicative estimate — consult a tax professional for your specific situation.
3 numbers for a first estimate
Rough estimate: fixed charges estimated at 15% of rents, interest at 70% of monthly payment. Use the detailed calculation for a precise result.
The property
Loan & expenses
▶
2025 Finance Act impact at resale (optional)
Based on the French component depreciation method. Land estimated at 15% (semi-urban zone). Notary fees amortised over 20 years. Indicative only.
🏗️ How depreciation works
This is the central mechanism of the LMNP régime réel — and the least understood. Depreciation is a notional tax charge: each year you deduct a fraction of your property's value, as if it were wearing out. Without spending a single extra euro.
The component method
The French tax authority breaks the building down into components, each with its own depreciation period:
Add your actual expenses (interest, loan insurance, service charges, property tax) and you understand why many LMNP owners legally declare a nil tax result.
✅ What this means in practice
On an apartment purchased at €350,000 with €8,500 in annual expenses, your tax threshold often exceeds €18,000–22,000 of rental income. Below that: zero LMNP tax. This isn't a niche tax break reserved for experts — it's the standard regime provided by French legislation.
⚖️ Pay now or in five years?
Since the 2025 Finance Act, depreciation deducted during the rental period is added back into the capital gains calculation at resale. In plain terms: you don't pay tax now, but you may pay more when you sell.
⚠️ What this means concretely
If you have deducted €50,000 in depreciation over 5 years, those €50,000 increase your taxable capital gain at resale. At a 30% marginal rate, that's €15,000 in additional tax. However, the holding-period relief (full income-tax exemption after 22 years of ownership) can largely offset this effect.
The decision to depreciate — and how much — depends on your planned holding period, your current marginal rate, and the likely evolution of Morzine property prices. There is no universal answer. The calculator above gives you an estimate for your situation.
🔍 Why no existing tool answered MY question
There are software packages to produce an LMNP tax return. Excel spreadsheets to calculate depreciation. Rental yield simulators.
But I found none capable of answering this simple question: "Can I take one more booking this month without harming my tax position at resale?"
Yet that's the decision I face several times a year. And it depends on my real-time LMNP threshold, my depreciation allowances, and my planned holding period. Three parameters no consumer tool connects together.
📋 What your accountant does — and what you can understand yourself
I'm not saying you should do without a tax accountant. For an LMNP régime réel return, one remains useful — even necessary. What I discovered is that an owner who understands their tax position costs their accountant less. And therefore costs themselves less.
A tax accountant who receives a shoebox of receipts in March bills 8 hours of work. The same accountant who receives a clean FEC file, a pre-filled 2031 return and a depreciation summary bills 2 hours. The difference: often €400–600 per year.
💡 What I built to manage this myself
Finding no suitable tool, I developed Morz'LMNP — a tax dashboard for seasonal LMNP owners. It generates the FEC, tax returns 2031/2033, simulates 10-year projections and optimises depreciation. Available by invitation. Contact me if you're interested.
🧾 No more shoebox of receipts
There's another problem I haven't mentioned yet: I'm disorganised. I pile up receipts telling myself "I'll sort through them later". I knew perfectly well that come March, I'd have lost some and would spend hours tracking down confirmation emails and invoices buried in inboxes.
The app handles this differently: I scan the receipt immediately after each purchase. The AI analyses it, identifies the amount, date and expense category, and records it automatically. The receipt is attached to the transaction. No more end-of-year sorting.
✅ What this changes in practice
An electricity bill, a cleaning receipt, a service charge notice — one photo with your phone is enough. The app handles the rest: categorisation, accounting entry, tax deductibility calculation. Come March, your accountant receives a complete file, not a shoebox.
Are you an LMNP property owner in Morzine or elsewhere?
I'll calculate your LMNP threshold for free and show you the dashboard in consultation mode.
What is the difference between micro-BIC and régime réel for LMNP?
The micro-BIC applies a flat 50% allowance on your rental income — simple but often disadvantageous. The régime réel deducts your actual expenses plus depreciation. As soon as your expenses exceed 50% of your rental income (which is common with a mortgage), the régime réel is almost always more favourable.
What is the LMNP tax threshold?
It's the level of annual rental income below which your LMNP tax result is zero — you pay no tax on those revenues. It equals the sum of your deductible expenses (interest, loan insurance, fixed charges) plus your available depreciation allowances.
Is land depreciable under LMNP?
No. Land is considered non-perishable — it cannot be depreciated. Only the building portion (plus notary fees, furniture and works) is depreciable. The land percentage varies by location: 5% in rural areas, 15% semi-urban, 25% urban, 40% major cities.
Does the 2025 Finance Act undermine the LMNP régime réel?
No, it nuances it. Depreciation remains very advantageous if you hold the property long-term (holding-period relief applies). For a resale within 2–5 years, the calculation warrants careful analysis. The calculator above provides an estimate.
Is a tax accountant compulsory for LMNP régime réel?
Legally no, but strongly recommended for the first year. Joining an approved management centre (CGA) avoids the 25% tax surcharge on profits and costs around €200 per year. With a management tool, you can significantly reduce your accountant's fees.
Marc — Morz'Inn, Morzine
Seasonal rental property owner in Morzine since early 2026 and banking software developer. I built Morz'LMNP to manage my own LMNP tax situation and share here what I wish I'd known earlier.
morzinn.com