The year 2025 brings major changes to the real estate sector: extended zero-interest loans (PTZ), facilitated donations, as well as increased notary fees, higher taxes for furnished rentals, and the end of the Pinel program. Here’s how to make the most of the opportunities while avoiding pitfalls.
Key Measures for 2025: What’s Changing
- Extended PTZ: The zero-interest loan is now available across all of France for purchasing new homes.
- Facilitated Donations: Up to €300,000 tax-free for financing a property purchase or energy renovations.
- Higher Notary Fees: From 5.80% to 6.31% for older properties, except for first-time buyers.
- Stricter LMNP Taxation: Amortization amounts reintegrated into capital gains calculations.
- End of the Pinel Program: The rental investment tax reduction for new builds is discontinued.
PTZ for New Builds: An Opportunity to Seize
Starting April 1, 2025, the PTZ will be available for the purchase or construction of new homes across all of France, not just in high-demand areas.
Loan limits remain the same in 2025:
- New properties: Financing available up to €180,000.
- Older properties with major renovations: Eligibility remains in relaxed areas if renovations account for at least 25% of the total cost.
First-time buyers: Take advantage of the PTZ and avoid higher notary fees!
If you haven’t owned your primary residence in the past two years, you’ll still benefit from the unchanged 5.80% rate.
Donations: Up to €300,000 Tax-Free
The 2025 finance law allows tax-exempt donations up to €300,000 per person, provided the funds are used for:
- Purchasing a new home or off-plan property.
- Energy-efficient renovations.
Conditions to meet:
- The funds must be used within six months of the donation.
- The property must be used as a primary residence or rented out as such for five years.
Rising Notary Fees: Be Prepared
Transfer taxes will rise starting April 1, 2025, from 5.80% to 6.31% of the sale price.
Acquisition cost examples:
- €200,000: Fees of €16,624 (+€1,000).
- €600,000: Fees of €46,141 (+€3,000).
Fortunately, first-time buyers are exempt from this increase!
LMNP: Higher Taxes on Capital Gains
The status of non-professional furnished rental landlords (LMNP) faces stricter taxation. Amortization amounts will now be reintegrated into capital gains calculations, increasing the taxes payable upon sale.
Exceptions:
University housing, healthcare facilities, and senior residences remain exempt from this reintegration rule.
End of the Pinel Program
The Pinel program, which offered tax reductions for purchasing new rental properties, ended on December 31, 2024. No similar program has been introduced for 2025.
Rental Income: No Tax Reduction in Sight
Landlords of unfurnished properties had hoped for a higher standard deduction under the micro-foncier system (30%) to match the micro-BIC (50%). Unfortunately, this measure was not adopted.
Result: Furnished rentals remain more tax-advantageous than unfurnished rentals.
Conclusion
Despite some tax increases, 2025 offers real opportunities, especially with the extended PTZ and tax-exempt donations. First-time buyers and investors should carefully analyze the new tax reforms before starting their real estate projects.
➡ Tip: At Tanit Immobilier, we assist you in finding properties that match these new opportunities while helping you avoid tax pitfalls and fee increases. Contact us today for personalized support!
