Investment of a movable property

Non-professional movable property location: tax system from PMPL


The PMPL status (non-professional movable property) is defined by Article 151 septies of the CGI. The following conditions must be fulfilled to qualify for this status:

The rental investment must cover a furnished apartment.
The investor must register with the Register of Commerce and Companies as a professional furnished rental company.
The investor must withdraw more than 23,000 euros annually from his activity as a renter in furnished accommodation (this sum must be higher than the other professional income of the tax household).
Rental income must be declared in the ICB (Industrial and Commercial Benefits).

The properties that fall within the definition of furnished are:

Furnished rental properties
Aparthotels, of tourism, guest house and country cottage
Retirement homes, serviced residences


The professional furnished renter benefits from the following advantages:

Total deduction from income of deficits due to actual expenses (including: acquisition expenses, engineering, interest costs)
Amortization of assets:
Furniture is depreciated over 5 to 10 years
Real estate is amortized for the actual period of detention. The expert accountant will arbitrate an amortization period of between 25 and 40 years.
The land, often included in the purchase price, is not amortized. If this amount is not known, it should be allocated a quota of 10% to x% depending on the price of the land in the locality.
Recovery of VAT (under certain conditions: if investment in residence offering hostelries services such as household, supply of linen, cleaning of premises, preparation of meals); See also Article 257 bis of the CGI (General Tax Code)
Exemption from capital gains beyond 5 years (for rental income of less than € 90,000/ year or € 250,000/ year, depending on the case)
Provided that the income generated by this activity exceeds both 50% of the income of the tax household and 23 000 € of annual taxable rent, exemption for the ISF of the goods as professional property (only if net income> 0)


Status and social contributions
Self-employed worker: The renter in professional housing is considered socially as a trader and therefore falls under the scheme of self-employed persons (TNS). This involves registration with one of the specific social security funds (e.g.: RSI) and the payment of minimum contributions.
Accumulation with an employed activity: This status can be cumulated with the status of employee or pensioner under certain conditions.
Liability for taxes
The renter in furnished accommodation is subject to the Professional Tax, except for tourist rentals.
Furnished apartment rentals are not subject to VAT.


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