The 2026 finance act has been enacted: Act no. 2026-103 of 19 February 2026 reshapes several tax levers that every landlord or real estate investor must factor in this year. At the heart of the text is a new private-landlord status, known as the "Jeanbrun" status, which reopens depreciation of the property for unfurnished letting — a mechanism absent from French law since the Pinel scheme ended on 31 December 2024.
If you own, or are considering buying, a property intended for letting, three areas concern you directly: this new depreciation, the maintained doubled property income deficit cap for energy renovation, and the option for departments to raise their transfer duties. Each one weighs on the net return of your operation, and the application windows are time-limited.
Depreciation of 3% to 6.5% per year of the property's price — that is the range opened by the new private-landlord status (finance act 2026 real estate), for unfurnished lettings, from 21 February 2026 to 31 December 2028.
What this article covers
This article describes the finance act 2026 real estate measures that change the profitability of a rental investment: the new private-landlord status with depreciation (mechanism, rate, timetable), the extension of the property income deficit cap to €21,400 for energy renovation, and the possible rise in departmental transfer duties. For each measure: the legal reference, how it works and an indicative worked example.
Finance act 2026 real estate: the legal framework of the new measures
The finance act for 2026 was adopted and then enacted under reference Act no. 2026-103 of 19 February 2026. Like any finance act, it sets the budgetary framework for the year and amends the French General Tax Code (CGI — Code général des impôts) as well as, by reference, certain provisions of the French Construction and Housing Code (CCH — Code de la construction et de l'habitation). Three sets of provisions directly concern the holding and acquisition of rental housing.
The first is the creation of a private-landlord status, named after its rapporteur ("Jeanbrun"). It restores, for unfurnished letting, a logic of accounting depreciation of the property — that is, the annual deduction of a fraction of the acquisition price from the taxable rental income. This mechanism takes over from the Pinel scheme, whose last eligible acquisitions had to take place by 31 December 2024 at the latest. Since that date, no tax incentive for investment existed for new unfurnished letting.
The second concerns the property income deficit (déficit foncier). The standard regime allows a property income deficit, under the actual-expenses regime (régime réel), to be imputed against overall income up to an annual limit of €10,700 (CGI article 156). A cap doubled to €21,400 remains applicable to energy renovation works enabling a property to move out of classes E, F or G (the thermal sieves — passoires thermiques). The finance act 2026 extends this scheme until 31 December 2027.
The third concerns transfer duties for valuable consideration (DMTO — droits de mutation à titre onéreux), the main component of "notary fees" on the purchase of existing property. The act opens the option, for departmental councils, to raise the departmental share of these duties by +0.5 point. This rise is not automatic: it depends on a resolution of each department.
| Measure | Effect | Reference / timetable |
|---|---|---|
| Private-landlord status ("Jeanbrun") | Depreciation of 3% to 6.5%/year of an unfurnished rental property | Act no. 2026-103, from 21/02/2026 to 31/12/2028 |
| Energy renovation property income deficit | Cap doubled to €21,400 (thermal sieves E/F/G) | CGI article 156, extended until 31/12/2027 |
| DMTO departmental share | Possible rise of +0.5 point by resolution | Act no. 2026-103 (departmental option) |
How the new private-landlord status works
The private-landlord status reintroduces depreciation into the calculation of rental income. Depreciation consists of deducting each year, from the taxable rent, a fraction of the property's acquisition price — as if the dwelling were "wearing out" for accounting purposes. It is a mechanism already familiar to furnished landlords (LMNP — Loueur en Meublé Non Professionnel, non-professional furnished landlord), but it had until now been closed to unfurnished letting since the extinction of Pinel.
The depreciation mechanism for unfurnished letting
In practice, the landlord deducts an annual percentage of the property's price (excluding land value) from their rental income. The finance act 2026 sets a range of 3% to 6.5% per year depending on the case — the exact rate depends on the conditions set out by the text and its implementing measures. This deduction comes on top of the usual deductible charges (loan interest, maintenance works, property tax, insurance). Mechanically, it reduces, or even cancels out, the net taxable rental income for the duration of the depreciation.
Profile: a landlord holding a property let unfurnished under the actual-expenses regime, whose rental income is currently taxed at their marginal income tax rate (TMI — taux marginal d'imposition) plus social charges.
The application window and the replacement of Pinel
The scheme is time-limited: it applies to operations carried out from 21 February 2026 to 31 December 2028. It takes over from the Pinel scheme, which reserved an income tax reduction for acquisitions of new housing until 31 December 2024. The logic changes: Pinel offered a direct income tax reduction, whereas the new status acts upstream, on the rental income base, through depreciation. For a landlord under the actual-expenses regime, the effect is therefore measured on the net taxable income, not on a tax-reduction line.
Property income deficit: the €21,400 cap for thermal sieves
In parallel, the act maintains the enhanced property income deficit lever. When deductible charges (works in particular) exceed the rents, the resulting deficit is imputed against overall income up to €10,700 per year (CGI article 156), the surplus being carried forward. This cap is raised to €21,400 when the works enable a property rated E, F or G to reach a higher class. This bonus is extended until 31 December 2027. To size this lever precisely, you can use the property income deficit simulator and test the imputation according to your works.
| Lever | Cap / rate | Tax effect |
|---|---|---|
| Depreciation (private-landlord status) | 3% to 6.5%/year of the property | Reduces the net rental income base |
| Standard property income deficit | €10,700/year against overall income | Reduces taxable overall income |
| Energy renovation property income deficit | €21,400/year (thermal sieves E/F/G) | Doubles the imputation against overall income |
Worked example: the effect of depreciation on a one-bedroom rental
Take an indicative example, built with market orders of magnitude (existing-property price references such as DVF / notaries) rather than round figures. You buy a 42 m² one-bedroom flat (a "T2", i.e. a flat with a living room plus one bedroom) in Angers, let unfurnished, for an acquisition price of €187,500. The annual rent excluding charges is €8,640 (€720 per month). You are under the actual-expenses regime, with a marginal income tax rate (TMI — taux marginal d'imposition) of 30% and social charges of 17.2%, i.e. a combined rate of 47.2% on net rental income.
For simplicity, we assume a land share of 15% of the price, i.e. a depreciable base of €159,375, and a depreciation rate of 3.5% per year, within the range of the act. The other deductible charges (interest, property tax, insurance, management) are estimated at €3,100 per year. The example is purely illustrative: your actual situation depends on your own figures and on the eligibility conditions of the scheme.
Scenario — T2 at €187,500, rent €8,640/year, 30% marginal rate
| Item | Detail | Amount |
|---|---|---|
| Annual rent | €720 × 12 | €8,640 |
| Usual deductible charges | interest, property tax, insurance, management | −€3,100 |
| Annual depreciation | €159,375 × 3.5% | −€5,578 |
| Net taxable rental income | 8,640 − 3,100 − 5,578 | −€38 |
| Tax + social charges avoided (vs without depreciation) | €5,578 × 47.2% | €2,633 |
In this example, depreciation almost cancels out the taxable rental income: without it, the net taxable income would have been €5,540, taxed at 47.2%, i.e. about €2,615 of tax and social charges. The annual saving therefore approaches €2,600 in the first year. Be careful: depreciation is not a permanent gift — it reduces the property's tax value and will weigh on the capital gains calculation at resale. To anticipate this effect, the real estate capital gains calculator lets you simulate the tax on disposal.
Finance act 2026: the mistakes to avoid on real estate
Mistake no. 1 — Confusing depreciation with a tax reduction
The new private-landlord status is not a "second Pinel". Pinel offered a direct income tax reduction, calculated on the investment price. The 2026 status acts on the base: it reduces the net taxable rental income through depreciation. The effect therefore depends entirely on your TMI and your social charges. With low or zero rental income (TMI of 0% or 11%), the gain is mechanically more modest.
Mistake no. 2 — Forgetting the impact on capital gains at resale
The depreciation deducted each year reduces the net book value of the property. Depending on the terms adopted, this may increase the taxable capital gain at the time of sale. A tax advantage during the holding period can therefore translate into a higher bill on exit. Never reason on the annual saving alone: factor in the resale horizon.
Mistake no. 3 — Believing DMTO have risen everywhere
The +0.5 point rise in departmental transfer duties is not general: it depends on a resolution of each departmental council. Before factoring this rise into your acquisition budget, check the rate applicable in the department of the property. Notary fees on existing property run around 7% to 8% of the price; an extra half-point of DMTO is not neutral on a large operation.
⚠️ Warning: figures of €40,000 of property income deficit, a €30,000 micro-foncier threshold or a capital gains exemption at 17 years sometimes circulate wrongly. None of these values is accurate: the energy renovation property income deficit is capped at €21,400, and the full capital gains exemption is only acquired after 22 years (income tax) and 30 years (social charges) of ownership.
Mistake no. 4 — Waiting until 2029 to use the private-landlord status
The scheme is time-limited to 31 December 2028. An operation carried out after that date would not benefit from it, unless extended by a later finance act. If depreciation is part of your strategy, the eligibility window is less than three years from 21 February 2026.
Calculate the real effect of the finance act 2026 on your return
Mon Simulateur Immobilier rental yield simulator
Estimate your net after-tax return: the rental yield simulator combines the purchase price, the rent, the charges, your tax regime and your TMI to calculate the gross, net and net-net yield — enough to measure the effect of depreciation and the property income deficit on your operation.
To go further: the property income deficit simulator and the real estate capital gains calculator.
Conclusion
The finance act 2026, with the private-landlord status, reopens a depreciation lever that had disappeared since the end of Pinel, while maintaining the enhanced property income deficit for energy renovation. The gain depends on your personal tax situation and on the holding horizon: an advantage on entry may be partly clawed back at resale. Before committing, cost the full operation, tax included.
The rental yield simulator lets you frame the net return of your project by factoring in the rent, the charges, the actual-expenses regime and your tax bracket — the first step in turning a finance act 2026 measure into a costed decision.
