LMNP student residences: a turnkey solution for investing in real estate without the hassle of rental management. This mechanism enables investors to diversify their assets by relying on a stable rental market, while entrusting management to a specialized operator.
What is LMNP?
LMNP (Loueur Meublé Non-Professionnel) is a French tax regime that allows individuals to rent furnished real estate to individuals while enjoying tax benefits. LMNP en résidence étudiante is a variant of this scheme, specifically designed for investors wishing to rent furnished accommodation to students.
This scheme allows investors to benefit from attractive yields, simplified management (residences are managed by professionals), and tax advantages.
The main principles
The LMNP student residence scheme is based on the following principles:
The investor buys a furnished and equipped apartment in a student residence.
The investor rents the property to students under a commercial lease.
The residence manager takes care of the day-to-day management of the property and tenants.
The investor receives rental income and benefits from tax advantages.
Special conditions
To qualify for the LMNP student residence scheme, investors must meet certain conditions:
The property must be furnished and equipped for students to rent.
The property must be rented to students enrolled in a higher education institution.
The rental contract must be signed for a minimum of 9 months.
The rent must be based on the local market.
LMNP regime and VAT recovery
The LMNP scheme allows investors to reclaim VAT on expenses related to the purchase and management of the property. This can represent a significant saving for investors. However, it is important to note that VAT recovery is subject to certain conditions, and must be declared in the tax return.
Why invest in LMNP?
Investing in LMNP student residences offers several advantages:
Attractive yield: student residences are in high demand, guaranteeing a steady return.
Simplified management: the residence manager takes care of everything, allowing investors to concentrate on their assets.
Tax advantages: the LMNP system allows you to reclaim VAT and benefit from other tax advantages.
Investment diversification: real estate is a secure investment that can be used to diversify an investment portfolio.
LMNP taxation
Income from LMNP student residences is subject to income tax. However, investors can benefit from deductions and allowances to reduce their tax liability. It is important to consult a tax professional to determine the exact tax implications of the investment.
Conclusion
LMNP in student residences is an attractive investment opportunity to benefit from attractive yields, simplified management, and tax advantages. It's important to understand the conditions and principles of the LMNP regime before making an investment decision.
If you have any questions about the system's specifics, please don't hesitate to contact us at amm@capitalconseils.net.
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