Understanding the taxation of your buy-to-let investment
LMNP (non-professional furnished letting), depreciation, déficit foncier (property income deficit), the dispositif Jeanbrun (the new private landlord scheme): the key reference points of French rental taxation in 2026, explained simply.
Covesta is neither a tax advisory firm nor a chartered accountancy firm. This page provides general information, up to date as of July 2026 and subject to change. It does not constitute personalised tax advice: before making any decision, have your situation reviewed by a chartered accountant (expert-comptable) or a tax lawyer.
LMNP: micro-BIC or régime réel
Two regimes, two approaches: the micro-BIC, a simplified regime with a flat-rate allowance, and the régime réel, under which actual expenses and depreciation are deducted. The right choice depends on your actual expenses, your financing and your investment horizon.
Simplicity
Micro-BIC
Long-term furnished letting. Since 2025, furnished holiday lets have been subject to their own rules: a 30% allowance (ceiling of €15,000) for unclassified properties and 50% (€77,700) for classified ones.
Optimisation
Régime réel
Deductible depreciation is capped each year (article 39 C of the French General Tax Code, CGI): any excess is carried forward with no time limit.
Depreciation by component
Under the régime réel, each component of the property is depreciated over its useful life. The ranges below are commonly used orders of magnitude; your chartered accountant sets the exact schedule.
| Component | Indicative period | Annual rate |
|---|---|---|
| Structure / shell | 25 to 40 years | 2.5 to 4% |
| Roof, façade, waterproofing | 20 to 25 years | 4 to 5% |
| Installations (electrics, plumbing) | 15 to 20 years | 5 to 6.7% |
| Fittings (kitchen, bathroom) | 10 to 15 years | 6.7 to 10% |
| Furniture | 5 to 10 years | 10 to 20% |
Since 2025: depreciation added back on resale
For disposals made since 2025, the depreciation deducted under LMNP is added back when calculating the taxable capital gain: the taxable base on resale is therefore higher. A factor to build into any long-term wealth strategy, with the support of your chartered accountant.
Déficit foncier, renovation's ally
When a property is let unfurnished under the régime réel and expenses and works exceed the rents, the resulting property income deficit (déficit foncier) is offset against your overall income.
€10,700
a year, general case
Annual ceiling for offsetting the déficit foncier against overall income (excluding loan interest). Any excess is carried forward against property income over the following 10 years.
€21,400
energy renovation
Ceiling doubled, subject to conditions, for works that lift a home out of the passoire thermique category (energy-inefficient housing). The scheme applies until the end of 2027: a direct lever for the renovation projects we coordinate.
Dispositif Jeanbrun (2026)
Introduced by the 2026 Finance Act, this scheme allows landlords to depreciate a home let unfurnished and to deduct that depreciation from their property income, for acquisitions made between 21 February 2026 and 31 December 2028.
Annual deduction according to the rent charged
The more affordable the rent, the greater the benefit. Indicative rates for new builds, annual deduction ceilings.
Main conditions: unfurnished letting as the tenant's main residence, a letting commitment of at least 9 years, compliance with rent and tenant income ceilings, and either a new-build home compliant with RE2020 (the current French environmental building standard) or an older home with works amounting to at least 30% of the purchase price and targeting an A or B energy rating. No geographical zoning condition.
LMNP or Jeanbrun: the comparison
Two different approaches, to be weighed up according to your situation with your usual adviser.
| Criterion | LMNP | Jeanbrun |
|---|---|---|
| Type of letting | Furnished | Unfurnished (tenant's main residence) |
| Tax regime | BIC, industrial and commercial profits (micro or réel) | Revenus fonciers (property income) |
| Mechanism | Deductible expenses + depreciation | Deductible depreciation of the property |
| Annual deduction ceiling | Article 39 C cap, no monetary ceiling | €8,000 to €12,000 depending on the rent |
| Commitment period | None | 9 years minimum |
| Acquisition period | No limit | From 21 February 2026 to 31 December 2028 |
| Energy requirement | General letting rules | New build: RE2020 · Older property: aim for A or B after works |
| Depreciation on resale | Added back into the capital gain (disposals since 2025) | According to the rules applicable at the time of disposal |
| Typical profile | Optimised regular rental income | Reducing overall tax liability |
A property project in mind?
We support you on the property side of your project and, for tax questions, refer you to specialist chartered accountants. First meeting free of charge.
Depending on your profile: the entrepreneur-investor's guide, the executive investor's guide or non-resident taxation.
The information on this page is provided for general guidance only. It constitutes neither tax advice nor investment advice, and does not commit Covesta. Every situation is unique: consult a chartered accountant or a tax lawyer.