Rental Deficit Simulator
Optimize your real estate taxes with rental deficit
Rental deficit allows deducting renovation work from your taxable income, generating immediate tax savings. — View detailed guide
Understanding rental deficit
Rental deficit in brief
Rental deficit allows you to deduct expenses and renovation that exceed your rental income from your global income, up to 10,700 €/year (doubled to €21,400 for eligible energy renovation work, from 01/01/2023 to 31/12/2027). The excess can be carried forward on rental income for 10 years.
Deductible work
- Maintenance and repair (roof, plumbing...)
- Improvement (insulation, heating, ventilation...)
- Compliance upgrades
NON-deductible work
- Surface extension
- Reconstruction
- New construction
Savings by tax bracket
TMI 30%
3,210 €/an
TMI 41%
4,387 €/an
TMI 45%
4,815 €/an
Commitment: Unfurnished rental required for 3 years starting from the last year the deficit was deducted from global income (not from acquisition).
Enhanced rental deficit extended to 31/12/2027
Doubled cap of €21,400/year reserved for energy-inefficient properties rated F or G whose works reach A, B, C or D. Scheme refocused by the 2026 Finance Act (art. 12) — less than 24 months left to act.
10,700 €
Annual limit
10 years
Deficit carryforward
35 % – 47 %
Work savings
3 years
Rental commitment
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