The 2025 Finance Law introduces a major change for Non-Professional Furnished Rental (LMNP) landlords. This historically advantageous regime will undergo a significant tax increase, especially when reselling properties.
A Major Tax Change for LMNP Under the Real Regime
Until 2025, owners benefited from two key advantages:
- Reduced taxation on rental income thanks to depreciation.
- No reintegration of depreciation into the taxable capital gain upon resale.
These elements made the regime highly attractive. However, from 2025 onwards, depreciation will be taken into account when calculating capital gains, which will significantly increase the tax burden.
Before vs. After 2025: Table Explanation
| Criteria | Before 2025 | Starting 2025 |
|---|---|---|
| Rental Income | Reduced thanks to depreciation | Unchanged: still reduced by depreciation |
| Capital Gain Calculation | Sale price – Purchase price | Sale price – Purchase price + depreciation |
| Tax Impact on Resale | Low | Significantly increased |
Concrete Case Illustration
Example:
- Property purchase price: €200,000
- Depreciation applied: €9,000 per year
- Holding period: 5 years
- Resale price: €250,000
Capital gain calculation before and after 2025:
| Period | Capital Gain Formula | Taxable Amount |
|---|---|---|
| Before 2025 | Sale price – Purchase price | €250,000 – €200,000 = €50,000 |
| Starting 2025 | Sale price – Purchase price + depreciation | (€250,000 – €200,000) + (€9,000 × 5) = €95,000 |
In this example, the taxable base increases from €50,000 to €95,000, nearly doubling. This leads to a significant increase in capital gains tax.
Consequences for Investors
Despite this reform, the LMNP under the real regime still offers some advantages:
- Reduced taxation on rental income: Depreciation continues to significantly reduce taxable rental income, unlike unfurnished rentals, where this deduction does not exist.
- Personal capital gains regime: LMNP remains subject to progressive allowances based on the holding period, with full exemption after 30 years (for both income tax and social contributions).
| Holding Period | Income Tax Allowance | Social Contributions Allowance |
|---|---|---|
| Less than 6 years | None | None |
| 6 to 21 years | 6% per year | 1.65% per year |
| 22nd year | 4% | 1.60% |
| After 22 years | Full exemption | No further allowance |
| After 30 years | Full exemption | Full exemption |
Conclusion
The LMNP under the real regime remains attractive despite the 2025 tax increase. However, investors must now better anticipate the tax impact at resale. Optimized management and a long-term vision are more essential than ever to fully benefit from this regime.
➡ Tip: At Tanit Immobilier, we support you in finding properties suited to these new opportunities while helping you avoid tax pitfalls and fee increases. Contact us today for personalized assistance!
