Depreciation in Unfurnished Rentals: A Subtle Yet Major Turning Point for Private Landlords

Why This Is a Long-Awaited Turning Point

The debate on creating a tax status for private landlords is nothing new. It frequently resurfaces in parliamentary discussions without ever reaching a resolution. The release of a report dedicated to this status in early summer 2025 had sparked renewed hope for its inclusion in the 2026 Finance Bill. However, disappointment set in by September when the government's initial draft contained no measures on the subject.

Thus, the issue reemerged in a more unpredictable manner through amendments. Lawmakers seized the opportunity left by the government, which eventually submitted its own amendment, acknowledging the political necessity to address the ongoing real estate crisis. At the heart of the debates was the amendment by Representative Charles de Courson (LIOT), adopted before being refined by about a dozen sub-amendments.

What the New Mechanism Specifically Plans

The key measure involves allowing depreciation on unfurnished rentals. This system would be experimental and limited to acquisitions made between 2026 and 2028. For new properties, the basic depreciation rate would be set at 3.5%, with bonuses of +1% or +2% depending on whether the rent falls under the « social » or « very social » categories. For existing properties, the base rate would be 3%, also with bonuses (0.5% or 1%).

The depreciation base would cover only 80% of the property's value, excluding the non-depreciable land portion. For existing properties, the value of the mandated renovations to qualify would be added to the base. To be eligible, these renovations must represent 20% of the property's price, with no explicit requirements on their nature, though energy renovation appears to be the primary focus, as noted by legal expert Baptiste Bochart (Jedéclaremonmeublé.com).

The measure is highly regulated: the depreciable amount cannot exceed €8,000 per year per tax household and can be applied only against rental income, with no option to create a deficit deductible from overall income, unlike the traditional unfurnished rental scheme.

Another key point: in the event of a sale, the depreciation deducted during the rental period would be reintegrated into the capital gain, as already stipulated by the rule in place since the 2025 Finance Act. This aligns the measure more closely with the rental-furnished system while maintaining coherent final taxation.

Finally, the landlord must commit to a 12-year rental term, with strict conditions on tenant profiles: resources must comply with rent caps, and renting to a relative or in-law up to the second degree is prohibited. This approach is inspired by intermediate and social schemes but applied here to a general fiscal mechanism.

An ambitious measure with an uncertain future

The vote by the Assembly reflects a clear political intent to address the housing crisis by redirecting rental investment. The introduction of depreciation for unfurnished rentals could, on paper, spur construction and encourage major renovations of older properties.

However, the text is far from settled. Firstly, the entire structure relies on amendments inserted into a revenue section of the 2026 Budget Bill that was not originally designed for this purpose. Secondly, lawmakers must still vote on the entire budget by the end of November. Finally, the Senate, traditionally attentive to fiscal consistency, could significantly alter the measure or even limit its scope.

At this stage, the only certainty is that residential real estate is once again becoming a field for fiscal experimentation, during a period when the need to boost supply is at odds with budgetary constraints. The status of private landlords, long-discussed, now exists in an embryonic form: the question remains whether the text will endure the parliamentary process.