To deeply analyze the performance of paper-cutting elements in interior space design, this paper explores the artistic expression of paper-cutting elements. The BIM model is constructed based on the TVL algorithm, and a noise-reducing style migration method with an additional total variable loss function is used to fuse the texture features of a specific paper-cutting style so that the paper-cutting texture is generated in the target object area more intensively. The algorithm is supplemented with a U-shaped network structure to obtain the mask map of the target object, modify and expand the ScanNet training data set, and input a content map and a style map to generate the stylized paper cutout image automatically. The results show that compared with other elements, the stability of paper-cut elements reaches 96.31%, the image smoothness reaches 89.34%, and the retention of significant regions reaches 93.26%. In modern design, the peak signal-noise of paper-cut elements improved by 13.418d on average, the structural similarity also improved by 0.34807, and the recognition rate of paper-cut elements in the furnishing category reached 95%. Applying paper-cut art in interior space design can give interior furnishing design better visual effects, provide inspiration and ideas for interior space design innovation, and contribute to improving aesthetics.