An apartment purchased at a good price in a dynamic city can become a financial pit if the chosen tax regime does not match the planned holding period. Since the end of the Pinel scheme on January 1, 2025, and the introduction of new rules in 2026, rental investment is no longer structured the same way as it was two years ago. The framework has changed, along with the concrete decisions that come with it.
Depreciation in unfurnished rentals: the tax break of 2026
Until recently, depreciating the purchase price of a property was reserved for the LMNP status (non-professional furnished rental). The finance law for 2026 changes the game: a property rented unfurnished can now be depreciated up to 80% of its purchase price, with rates reaching 5.5% per year.
The trade-off is twofold: charging a rent below market rates and committing to a rental period of at least 9 years. In practice, this means accepting a lower gross yield in exchange for a significantly reduced tax burden throughout the commitment period.
For an investor aiming to build wealth over the long term rather than immediate cash flow, this mechanism can prove more advantageous than the old Pinel scheme. Detailed simulations and tailored offers for this new framework can be found on the site all-in-investissements.fr, which allows for comparisons of setups based on the type of rental chosen.
The mistake would be to enter this scheme without verifying that the capped rent at least covers the condominium charges, property tax, and loan repayments. If the monthly remaining charge exceeds what can be absorbed over 9 years, the setup becomes fragile.
Taxation of tourist rentals after the Le Meur law
Tourist furnished rentals (like Airbnb) have long offered a generous tax deduction under the micro-BIC regime. Since January 2025, the Le Meur law has tightened the rules: the micro-BIC threshold is lowered to 15,000 euros in annual revenue, and the flat-rate deduction has dropped to 30% for unclassified tourist rentals.
For classified furnished rentals, the deduction remains at 50%, but with a revenue cap of 77,700 euros. In tight areas, municipalities can impose a quota on changes of use and limit the number of short-term rental days.
In practice, if one exceeds the 15,000 euro threshold in unclassified furnished rentals, one switches to the real regime. And under the real regime, profitability depends on the ability to deduct actual expenses (renovations, loan interest, insurance). Without significant expenses to deduct, taxation can rise quickly.
When long-term furnished rentals become more profitable
With this tightening, long-term furnished rentals under the classic LMNP status regain a net advantage in many medium-sized cities. The occupancy rate is more stable, management fees (cleaning, laundry, platform) disappear, and the real BIC regime still allows for property depreciation.
Returns vary on this point depending on local markets, but in urban areas where student or employee rental demand remains strong, long-term furnished rentals often offer a better yield/peace of mind ratio than seasonal rentals.
Rent control: check before setting your price
Rent control is gradually expanding. Several major cities are already applying it, and ongoing experiments could be extended. According to a survey reported by several media outlets in September 2026, more than one in three listings exceed the rent caps in controlled areas.
The risk for an investor who sets a rent above the authorized cap is real:
- The tenant can refer the matter to the conciliation commission and obtain a retroactive adjustment of the rent, with reimbursement of the overpayment
- The prefecture can impose an administrative fine of several thousand euros per property
- In the event of lease renewal, the rent remains capped, limiting the expected increase
Before buying, check if the municipality applies rent control, consult the reference rents published by the local observatory, and incorporate this cap into the profitability calculation. A gross yield calculated on a non-compliant rent has no value.
Property deficit and energy renovations: an underutilized lever
The property deficit allows for the deduction of expenses exceeding rental income from overall income, up to 10,700 euros per year under normal circumstances. For energy renovation works, this cap has been raised, making the purchase of an old property to renovate particularly interesting from a tax perspective.
We are talking about concrete works here: wall insulation, window replacement, installation of a heat pump. The property must move from an energy class E, F, or G to an A, B, C, or D class to benefit from the increased cap.
This setup requires diligence. One must obtain an energy performance diagnosis before and after the works, keep all invoices, and ensure that the contractors are RGE certified. A missing document in the file can result in losing the tax advantage on all works.
Choosing between new and renovated old
New properties offer peace of mind (no works, recent standards, builder guarantees). Old properties with renovations offer a lower purchase price and more powerful tax levers. The choice depends on the investor’s profile:
- An investor who does not want to manage a construction site or advance cash will prefer new properties, even if it means accepting a more modest gross yield
- An investor willing to oversee renovations and tie up capital for several months will achieve a better net yield from renovated old properties
- In both cases, the net profitability after tax matters more than the displayed gross yield
The real estate market in 2026 shows a renewed interest in properties to renovate, driven by these tax incentives and often more negotiable acquisition prices than new ones. The decision is still made on a case-by-case basis, depending on available cash flow and the holding horizon.
