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
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
NON-deductible work
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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