Question 16930 — taxes and duties

Summary

Mr. Pieyre-Alexandre Anglade draws the attention of the Minister of the Economy, Finance and Industrial, Energy and Digital Sovereignty to the consequences, for agents of the institutions of the European Union who have retained their tax residence in France, of the reform of the status of professional furnished rental company (LMP) resulting from article 53 of law no. 2026-103 of February 19, 2026 on finance for 2026. This article modifies the article 155IV of the general tax code (CGI) in order to put an end to the discrimination suffered by non-resident taxpayers in the assessment of the preponderance criterion making it possible to distinguish the statuses of professional furnished rental company (LMP) and non-professional furnished rental company (LMNP). From now on, for non-residents, furnished rental income is compared not only to professional income taxable in France, but also to professional income taxed in their State of residence, as long as this income is subject to a tax equivalent to French income tax. This welcome progress, however, leaves a difficulty remaining for a particular category of taxpayers: agents of the institutions of the European Union who, while exercising their functions abroad and in particular in the Benelux, maintain their domicile tax in France within the meaning of article 4 B of the CGI. In accordance with the protocol on the privileges and immunities of the European Union, their treatment is subject to Community tax only. However, article 155 IV of the CGI, as amended, only provides for the taking into account of income not subject to French income tax for taxpayers who do not have their tax residence in France. A European agent who remains a French tax resident thus finds himself in a paradoxical situation: his treatment does not appear in either of the two categories of income used to assess the preponderance, neither under taxable income in France since he is exempt, nor under the exemption open to non-residents since he resides in France. This situation can lead to a reclassification as an LMP based solely on the structure of its remuneration, even though the reform of 2026 aimed precisely to correct this type of bias. He asks whether the Government intends to clarify the terms of taking into account income subject to community tax in the assessment of the preponderance criterion provided for in Article 155 IV of the CGI for agents of European Union institutions who have retained their tax residence in France, in particular on the occasion of the draft finance law for 2027.

Machine translation from French. The official text remains authoritative.

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