Private landlord status: a practical guide to France's new rental investment scheme

A long-awaited scheme, now in force

France's 2026 Finance Act (Law no. 2026-103 of 19 February 2026, article 47) created a new rental investment regime, nicknamed the "private landlord status" or "Jeanbrun" scheme after the Housing Minister. The principle is simple: owners who let a property unfurnished can depreciate part of its price for tax purposes, as a company or furnished-rental landlord would, in exchange for a capped rent.

Following the end of the Pinel scheme on 31 December 2024, it is now the main tax incentive designed to revive private investment in rental housing.

Which properties qualify?

• New-builds: homes bought new or off-plan (VEFA) between 21 February 2026 and 31 December 2028, or built under a permit filed during the same period.

• Existing properties: homes bought during the same period, provided renovation works amount to at least 30% of the purchase price and bring the property up to a high energy class (A or B). Listed historic buildings are excluded.

• No zoning: unlike Pinel, the scheme applies across the whole country.

How much can you depreciate?

Depreciation is calculated on 80% of the purchase price (land being excluded), increased for existing properties by certain works. The annual rate depends on the rent level:

• Intermediate rent: 3.5% for new-builds, 3% for existing properties

• Social rent: 4.5% new, 3.5% existing

• Very social rent: 5.5% new, 4% existing

The deduction is capped at €8,000 per year per tax household, rising to €10,000 when at least half of the rents fall in the social segment, and €12,000 for very social housing.

Source: ANIL, legal analysis of the 2026 Finance Act.

Commitments to respect

1. Let the property unfurnished for at least 9 years, as the tenant's main residence.

2. Put the property up for rent within 12 months of completion or purchase.

3. Comply with rent and tenant income ceilings specific to each segment (intermediate, social, very social).

A worked example

An investor buys a new apartment for €300,000 (excluding fees) and lets it at an intermediate rent. The depreciable base is €240,000 (80%). At 3.5%, depreciation would theoretically be €8,400 a year, reduced to the €8,000 cap. Over the 9-year commitment, up to €72,000 is deducted from taxable rental income.

For a taxpayer in the 30% marginal income tax bracket, €8,000 of depreciation actually offset represents about €2,400 less income tax each year, plus savings on social contributions. The real benefit, however, depends on the rent received, expenses and your overall tax situation: a personalised simulation is essential.

How does it compare with LMNP or property tax deficits?

LMNP (furnished rental) still allows depreciation under the real regime, but since the 2025 Finance Act, deducted depreciation is added back when calculating the capital gain on resale (except for certain serviced residences). Furnished letting remains relevant, but the exit advantage has shrunk. We covered this in our article LMNP in 2026: still a good idea?.

Property tax deficits (déficit foncier) remain effective for older properties needing work: the ceiling for offsetting against overall income is doubled to €21,400 for energy renovation works, an advantage extended until 31 December 2027.

Who is it for?

The private landlord status mainly suits highly taxed investors with a long-term wealth-building approach who are prepared to accept a capped rent. In the most expensive areas, such as western Paris, it is essential to check the gap between the intermediate rent ceiling and the market rent: that is often where profitability is decided. For existing properties, homes requiring heavy renovation, particularly energy-inefficient ones, can become real opportunities (see our article).

Considering a rental investment? The LGH Patrimoine team helps you identify suitable properties and compare strategies, in coordination with your tax adviser.