French Real Estate Investment | The Importance of Having a Dedicated Bank Account (LMNP/LMP/SCI/SCI familiale)

Micco will provide you with detailed insights into what a dedicated bank account is, whether it's a necessity, and what benefits it offers.

Real Estate
Mar 18, 2024

You've made the decision to purchase an investment property and want to rent it out furnished! As the owner, is it necessary to open a dedicated bank account?

While the answer depends on your specific circumstances, in reality, apart from legal requirements, the advantages of having a dedicated bank account make it a widely adopted and recommended practice.

Micco will provide you with detailed insights into what a dedicated bank account is, whether it's a necessity, and what benefits it offers.

Before diving into the details, it's essential to understand the you have also other options as well. For example: Micco.

Micco stands as an all-in-one financial platform tailored for business creators, facilitating a comprehensive array of services. These include streamlined procedures for company registration, professional bank account establishment, capital deposit management, and more.

Micco's commitment to empowering business creators extends to:

  • Effortless company registration processes
  • Seamless professional bank account setup
  • Convenient capital deposit management solutions
  • A suite of additional financial tools and resources catered to entrepreneurs

With Micco, business creators can access a one-stop solution designed to streamline their financial operations and support their growth endeavors effectively.

  1. What Is a Dedicated Bank Account?
  2. Is a Dedicated Bank Account Needed for Furnished Rentals?
  3. Why Should You Open a Dedicated Bank Account?
  4. Example

1. What Is a Dedicated Bank Account?

For furnished rental property owners, a dedicated bank account is a separate account created exclusively for rental activities, distinct from their personal account. This account is solely used for rental income reception and the payment of related expenses and taxes.

Therefore, it separates the financial transactions of rental activities from personal expenses.

Please note that a dedicated bank account is not necessarily a professional account. Particularly, if the rental activity is non-professional in nature, it may be a regular personal account. Hence, non-professional furnished rental property owners typically opt for personal accounts as they usually come with lower fees compared to professional accounts.

2. Is a Dedicated Bank Account Needed for Furnished Rentals?

Not all businesses are required to open a dedicated bank account.

For companies with capital (EURL/SA/SAS/SARL/SCI, etc.), it's mandatory to open a dedicated bank account during their establishment since this account will be used to hold their capital and register the company.

However, this requirement doesn't apply to sole proprietors. Nonetheless, the law changed with the Pacte Act on May 22, 2019.

  • Now, if your income exceeds €10,000 annually for at least two consecutive calendar years, it becomes obligatory to open a dedicated bank account.

Therefore, if you're a non-professional furnished rental property owner (LMNP, meaning non-professional furnished rental property owner), you're not legally obligated to open a dedicated bank account unless your rental income exceeds €10,000 per year.

3. Why Should You Open a Dedicated Bank Account?

Even before the Pacte Act was enacted, opening a dedicated bank account had become a strongly recommended and widely adopted practice for many non-professional furnished rental property owners.

The reasons for this are as follows:

  1. Streamlined Financial Management: A dedicated bank account helps simplify the economic and financial management of your rental activities and provides clarity on your financial information. By consolidating all transactions in a separate account, you can quickly review the income and expenses related to your furnished rental activities. Your account balance is directly visible, allowing you to check the financial status of your rental income or this activity at a glance.
  2. Enhanced Accounting Tracking: By separating your furnished rental activities from personal activities, you can avoid confusion or omissions that could lead to accounting and tax issues. Through bank statements, you won't forget any invoices, and your accountant can identify financial flows lacking vouchers.

In summary, a bank account specifically designated for real estate activities simplifies tracking and control for property owners and their accountants. All financial transactions are centralized in one account, making it easy to track and audit.

Additionally, in case of an audit, tax authorities will have a better understanding of your activities, cash inflows, and outflows. This makes it easier for them to trace different transactions and avoid unwarranted suspicions. Without a dedicated account, you would have to submit personal accounts, separating personal expenses from those related to furnished rental activities, indirectly expanding the scope and risk of tax authority audits. Using a dedicated account is clearly a safer option.

4. Example

Emma owns multiple investment properties, and all rental income and expenses are recorded in her personal bank account. This management approach has caused inconvenience every time she needed to make payments or verify if tenants had paid rent.

More significantly, tax authorities have the right to audit investment properties within the next three years. As all transactions related to Emma investment properties are linked to her personal account, she is obliged to provide all transaction records from the past decade to the tax authorities. This has provided the tax authorities with the opportunity to scrutinize Emma’s personal income and expenses.

Unfortunately, Emma failed to notice many cases of income misreporting and omissions in her annual personal income tax declarations, resulting in substantial fines.

However, if Emma had a dedicated bank account for her investment properties, it would not only have made day-to-day management more convenient but also significantly reduced the likelihood of a tax authority audit of her personal financial situation, thus mitigating potential risks.


In addition to legal obligations, there are numerous benefits to having a dedicated bank account. Consequently, many property owners, even when not legally obliged, choose to utilize one or more dedicated accounts. This is especially beneficial for property owners engaged in seasonal rentals, shared rentals, or those who own multiple properties.

A dedicated bank account must include all transactions related to your rental activities and nothing else. If an account includes only 50% of financial flows or, conversely, a significant number of personal transactions, it becomes meaningless. Therefore, we recommend:

  • Paying all expenses from this account and refraining from using it for personal expenses.
  • Choosing a dedicated account with an attached bank card to avoid withdrawals and cash payments or using your personal bank card for expenses related to rental activities. These practices will provide accurate financial flow tracking.

💡Micco is committed to providing comprehensive real estate investment solutions. We not only assist you in property management but also offer dedicated bank account services to ensure seamless financial management.

Furthermore, we provide real estate investment tax package which is only 49€ HT/month to ensure your tax matters are compliant and worry-free. Whether you're a first-time investor or an experienced property investor, Micco provides professional support to make your investments smoother and more profitable.

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