Furnished Rentals: Depreciation Falls by the Wayside
A thunderclap in rental real estate: the finance committee has decided to eliminate depreciation for furnished rental owners as part of the 2026 Finance Bill. This decision reignites the anger of landlords, who accuse the deputies of being out of touch with the realities of the market.
In the 2026 Finance Bill
The National Assembly has eliminated the tax deduction option for amortizing a furnished rental property, whether it is a long-term, student, or seasonal lease. This measure, advocated in the name of « simplification » and « combating speculation, » results in aligning the taxation of furnished rentals with that of unfurnished properties. However, for industry professionals, this is considered a strategic mistake.
The Root of the Malaise
JD2M executives also criticize what they call an « absurd » interpretation of the figures put forward by some lawmakers, who annually compare the number of people declaring properties as furnished rentals versus unfurnished rentals to justify a supposed « explosion » in furnished rentals. « They're comparing declarants, not the actual properties, » notes Victor Peltier. Many owners occasionally rent out their primary residence as furnished, appearing in the statistics without this indicating a lasting expansion of the rental market.
Eliminating depreciation could have the opposite effect of what is intended
Restricting supply, discouraging investors, and depriving students and young professionals of an already tight segment. Beyond the technical issue, it's the tax volatility that frustrates investors. In one year, the legislature shifted from partially reintegrating depreciations to offering a favorable status for private landlords, only to subsequently overturn everything.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
