Structured Real Estate

§ 01

LMNP: near-complete tax relief on rental income

The LMNP status (Loueur Meublé Non Professionnel, non-professional furnished-letting status) allows, under the actual-expenses regime, the property and furniture to be depreciated. In practice, depreciation wipes out taxable income for 15 to 25 years: the rent comes in almost tax-free. One of the rare schemes where the tax benefit applies without counting against the overall tax-loophole cap.

§ 02

Temporary bare ownership

Buying the bare ownership of a property for 15 to 20 years means paying 55 to 65% of its full price. During that period, the usufructuary (often an institutional landlord) collects the rent and covers maintenance. You receive nothing, declare nothing, and pay no IFI (wealth tax) on that portion. At the end of the period, you recover full ownership tax-free.

• Discounted purchase price (~65% of full ownership value)
• No taxable income during the period
• No IFI (wealth tax) on the split-off portion
• Full ownership restored tax-free

§ 03

SCPI split ownership

The same logic applied to SCPI: buying the bare ownership of units for 5 to 10 years at 60 to 80% of their value. Ideal for building a supplementary income stream that will kick in right at retirement, with no tax during the split-ownership phase.

§ 04

Unfurnished rental property: the classic option worth knowing

Under the actual-expenses regime, renovation work generates a déficit foncier that can be offset against overall income (up to €10,700 a year), a powerful tool for a high-TMI investor doing renovation work. But unfurnished letting under the micro-foncier regime remains tax-heavy with no particular leverage.