The Minister of Economy is questioned about this situation, which appears to be unfair to non-resident investors.

The question is whether, to be considered a non-professional furnished rental (LMNP) lessor, several financial conditions must be met cumulatively:

• Annual revenue not exceeding €23,000.
• Annual revenue not exceeding other taxable income from the household's professional activities, subject to income tax (IR) in France.

Many non-residents have retained property in France that they rent out - as non-professionals - during their absence. In many cases, the income they derive from this activity exceeds their other incomes in France, often non-existent as they carry out their professional activity abroad. Therefore, they fall into the category of professional furnished lessors, whose capital gains regime is generally less favorable than the capital gains regime for LMNP. Madame Évelyne Renaud-Garabedian asks the minister whether, in comparing rental income with other income for a non-resident, their professional income earned abroad could be taken into account.

The response RM n°07040 Senate Journal, January 4, 2024:

Article 155 IV-2 of the General Tax Code (CGI) states that "the direct or indirect rental activity of furnished or intended to be furnished residential premises is carried out on a professional basis when the following two conditions are cumulatively met: the annual income from this activity by all members of the tax household exceeds €23,000; this income exceeds the income of the tax household subject to income tax in the category of wages and salaries within the meaning of Article 79, industrial and commercial profits other than those derived from furnished rental activity, agricultural profits, non-commercial profits, and the income of managers and partners mentioned in Article 62. Article 4A of the CGI also provides that "individuals whose tax domicile is located outside of France are liable to income tax only on their French-source income." In these conditions, when a non-resident user receives income from the furnished rental of residential premises, exceeding €23,000, and, moreover, their only French-source income as mentioned in the 2nd paragraph of Article 155 IV-2 of the CGI subject to income tax in France is lower than the income from the furnished lessor activity, then the activity must be qualified as "professional." The legislation does not provide, indeed, that untaxed foreign-source income in France be taken into account to establish a comparison with the income from furnished rental received.