A cessation of activity in LMNP is never just a simple administrative click. Every step matters, every document counts, and the slightest negligence can come at a high price, especially when taxation is involved.
LMNP Cessation of Activity: Understanding the Stakes and Essential Steps
Ending an activity as a non-professional furnished rental requires almost surgical precision. The cessation declaration must be submitted exclusively through the single window of the INPI and must be completed within 30 days following the cessation date. This formality leads to the deactivation of the SIRET number and, in the case of complete cessation, automatic deregistration with the SSI or URSSAF. If you return to LMNP after a stint as LMP, the social deregistration is only done upon request: forget the automation, you need to manually request this exit.
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For taxpayers under the real regime, the administrative closure does not stop there. The submission of the closure tax package (forms 2031 and 2033) must be done within 60 days. This milestone, often underestimated, triggers immediate taxation of profits and any potential deficits. Unutilized deficits and deferred depreciation are then permanently wiped out if the cessation is total. This requires rigorous planning to avoid any loss.
Another point of vigilance concerns the Business Property Contribution (CFE). If the cessation occurs during the year, it is possible to request a prorated reduction. This process is directed to the business tax service, but it is never automatic. For properties in serviced residences, VAT regularization is also required.
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The management of LMNP cessation of activity and capital gains remains crucial: calculating the capital gain, choosing the tax regime, checking possible exemptions… Every detail matters, especially since the latest reforms. For tailored support, the resource “Ending an LMNP: tips and key steps to terminate your furnished rental – Immo Clé” provides targeted answers.
What Tax Obligations Arise When Stopping Your Non-Professional Furnished Rental Activity?
As soon as the LMNP activity ceases, the steps to follow become clearer. It is necessary to comply with a series of tax formalities that are essential for exiting the regime. First, the mandatory declaration to the INPI single window. This notification, to be made within 30 days after the cessation, deactivates the SIRET number and triggers automatic deregistration with the SSI or URSSAF. In the case of returning to LMNP after an LMP experience, social deregistration requires a specific procedure.
Under the real regime, the closure tax package must be submitted within 60 days. This step confirms the immediate taxation of profits made and seals the definitive loss of unutilized deficits and deferred depreciation (ARD) if the cessation is total. For those under the micro-BIC, the cessation declaration is sufficient, with no additional tax formalities.
The CFE is due for the entire year, except in the case of an explicit request for prorated reduction (article 1478 IV of the CGI) addressed to the competent service. Several pitfalls await: omission of declaration to the INPI, exceeding deadlines for the tax package, social deregistration not requested when changing from LMP to LMNP, absence of CFE reduction request, insufficient tax anticipation on capital gains, definitive loss of deficits or ARD, and neglected VAT regularization for serviced residences.
Here are the most common mistakes observed during these procedures:
- Omitted or late INPI declaration
- Missed deadlines for the tax package
- Social deregistration not requested when transitioning from LMP to LMNP
- CFE reduction not solicited
- Poor anticipation of capital gains taxation
- Deficits and ARD lost due to lack of foresight
- Forgotten VAT regularization in serviced residences
Vigilance is essential at every step. This discipline not only protects against potential reassessments but also ensures compliance with the LMNP cessation of activity before the tax authorities.
Management of Capital Gains: Calculation, Taxation, and Exemption Cases
Since February 15, 2025, the taxation of capital gains in LMNP has changed. Article 84 of the 2025 finance law has established that all depreciations applied under the real regime must be reintegrated into the calculation of taxable capital gains upon the sale of the property. As a result, the tax bill increases and reduces the appeal of long-term depreciation strategies.
The calculation method aims to be clear, but in practice, it becomes complex. The LMNP capital gain corresponds to the difference between the sale price and the adjusted acquisition price (including fees and works), increased by the total of the depreciations deducted throughout the holding period of the property. This base is then subject to two levies: 19% for income tax and 17.2% for social contributions. The whole is modulated by allowances for the duration of ownership: from six years, the tax gradually lightens, until complete exemption after 22 years for income tax and 30 years for social contributions.
The micro-BIC stands as an exception: it does not require the reintegration of depreciations, and the capital gain is calculated as an unfurnished rental, without increase. For those hoping for an exemption, several situations are provided for in the general tax code: modest turnover (article 151 septies), retirement, gratuitous transfer, or contribution to a company. Each exemption regime requires meticulous verification of revenue thresholds, duration of activity, and nature of the transfer. A provision too often overlooked: it can radically change the amount owed to the tax authorities.
The cessation of LMNP activity is not just about turning the page on an investment. It is about negotiating the exit, anticipating taxation, and sometimes avoiding a hefty blow. A trajectory that, when well prepared, allows for writing the next chapter without unpleasant surprises.