Mountain news / November 06th, 2025

Investing in LMNP in an MGM tourist residence: Principles, benefits and key features

Pièce de vie dans un appartement des Chalets Láska aux Contamines-Montjoie

Investing in a mountain tourist residence under the LMNP (non-professional furnished rental) status is a popular way to combine personal use, rental income, and long-term wealth creation. MGM French Properties, a leading name in high-end real estate in the Northern Alps, offers outstanding opportunities to invest in premium properties in some of the most beautiful resorts in Savoie and Haute-Savoie. Read on to discover everything you need to know about LMNP and investing in an MGM tourist residence.

LMNP status: principles and conditions

The LMNP (Non-Professional Furnished Rental) scheme allows individuals to invest in a furnished property—usually in a tourist residence—and rent it out while benefiting from tax advantages, provided the property is eligible for this type of rental activity.

To qualify for LMNP status, investors must:

Purchase a new or existing furnished property.
Rent the property to holidaymakers or tourists.
Ensure that annual rental income does not exceed 50% of the household’s total income. If it does, they must switch to Professional Furnished Landlord (LMP) status.
Choose the simplified ‘réel’ tax regime.

What are the tax advantages of LMNP status in an MGM tourist residence?

Investing under LMNP in an MGM tourist residence provides several tax benefits, helping you maximize the profitability of your investment while reducing taxable rental income:

VAT recovery: 20% of the total property value can be reclaimed if you invest in a new tourist residence.
Deduction of investment-related expenses from rental income, including:
- Loan interest
- Property tax
- Notary fees
- Service charges
- Accounting fees
Depreciation of the property: LMNP status allows you to depreciate part of the property value (85% of the value excluding land) and movable assets (100%) each year, thereby lowering your taxable income. Depreciation of the property is spread over 30 to 50 years for the real estate and 5 to 10 years for furnishings.

Why is investing in LMNP a smart choice?

Investing in LMNP in an MGM tourist residence is an attractive tax and wealth management strategy that enables you to:

Generate additional income
Enjoy a second home for several weeks each year
Prepare for retirement
Build long-term equity
Grow your overall wealth

Moreover, through MGM Hôtels & Résidences, MGM takes care of rental management, maintenance, and marketing, making it the ideal investment for combining enjoyment with peace of mind. This ensures stable returns, regardless of your property’s occupancy rate.

Chambre avec vue dans un appartement à vendre des Chalets Láska disponible aux Contamines-Montjoie

Is it easy to resell an LMNP property?

While resale is not the primary goal of an LMNP investment, it is entirely possible. In this case, certain rules apply:

If you recovered VAT at the time of purchase, an adjustment may be required upon resale. This is calculated pro rata based on the time elapsed since the purchase. After 20 years, no adjustment is necessary. However, if you resell the property with the lease still in place, no VAT repayment will be required
Capital gains tax on property is calculated in the same way as for a standard second home, i.e. at a tax rate of 19%, plus 17.2% in social security contributions. Progressive exemptions may apply after 5 years of ownership.

2025 Finance Law: what has changed

Key measures to be aware of:

Reintegration of depreciation into capital gains on resale (excluding serviced residences). This reduces the tax advantage if you resell a traditional LMNP property.
The micro BIC status is less favourable for unclassified furnished properties: the allowance has been reduced to 30% and ceiling set at €15,000 per year.

Need more information?

Contact an MGM advisor

What are the advantages of
MGM tourist residences?

The LMNP status is an investment incentive that provides a range of tax benefits. MGM tourist residences offer high-value opportunities thanks to:

Prime locations

Situated in the most desirable Alpine resorts, MGM tourist residences offer ski-in/ski-out access or are located in the heart of the resorts, with breathtaking views.

High-quality, fully equipped accommodation

The apartments are tastefully decorated and feature premium finishes, highlighting natural materials such as wood, stone, and granite. Each unit includes a covered parking space, a cellar, and a ski locker.

High-end services

The Spa Montagnes du Monde^® wellness area of around 800 m² features a heated swimming pool, steam room, sauna, hot tub, fitness room, and treatment rooms, offering an exceptional experience. Likewise, the reception area and M’Bar provide opportunities to relax and socialize around the fireplace, enjoy live piano music, and take part in themed evenings. Property maintenance and hotel-style services further enhance the experience, ensuring guests enjoy a truly privileged stay.

Professional, hassle-free management

Upon signing the commercial lease, the investor entrusts the management of the property to MGM Hôtels & Résidences, freeing themselves from all the tasks related to renting and maintaining the property. The investor simply reserves their weeks of occupancy and can also choose to exchange weeks to explore other destinations.

MGM tourist residences combine strong tourist appeal, stable returns managed by the operator, and long-term capital appreciation in highly sought-after locations. Investing in an MGM residence under the LMNP status is a forward-looking decision that offers numerous benefits and represents a meaningful, enduring investment.
There is no shortage of immediate opportunities, and the dream of owning a high-quality mountain property can become a reality this coming winter.

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10 key points for successful investment in the mountains

Livre blanc - Les 10 points clés pour bien investir à la montagne

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A must-have to make the right choices with confidence.

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