Do you let your property furnished on Airbnb or Booking under the real regime (the régime réel, where you deduct actual costs) and depreciate the purchase price to pay less tax? The draft budget for 2027 wants to limit that depreciation, and tourist furnished rentals are treated more harshly than the others. The text is not voted: here is exactly what it proposes, where it stands at the Assemblée nationale (the lower house of the French Parliament) and what you can do right now without rushing anything.
This article draws on the official documents read for the occasion: the 2027 finance bill (projet de loi de finances, PLF), no. 3210 tabled at the Assemblée nationale (article 7, article 33 and the explanatory memorandum), the amendments I-CF776 and I-CF1588, the Assemblée's page on the examination calendar and the service-public.gouv.fr sheet on furnished letting income (checked on 15 April 2026). Quotes from the official text are our own translation from the French.
Last verification of sources: 26 October 2026. This is not personalised tax advice: check it against your own situation, with your chartered accountant (expert-comptable). A bill can change at every stage.
What does article 7 of the 2027 budget propose for furnished rentals?
Article 7 would cap the depreciation of furnished homes let by a non-professional landlord. The text tabled on 1 October 2026 adds a special case to article 39 C of the code général des impôts (the French general tax code): when the letting of furnished residential premises is not carried out on a professional basis, depreciation is deductible up to a rate of 2.5%, without exceeding €7,000 a year per tax household. When the premises are a tourist furnished rental, the rate drops to 1.5% and the cap to €5,000 a year per tax household.
The text specifies that this cap does not apply to certain residences: those intended exclusively for students, for people under 30 in training or on an internship, for holders of a professionalisation or apprenticeship contract or for people over 65, as well as certain establishments for elderly or disabled people and long-term care facilities.
The text defines a tourist furnished rental by reference to article L. 324-1-1 of the code du tourisme (the French tourism code), which we did not re-read for this article: check with your accountant whether your property falls into this category.
According to the government's explanatory memorandum, the aim is to "continue to bring the features of the bare letting and non-professional furnished letting regimes closer together" and to encourage long-term letting (our translation).
What about the depreciation I could not deduct?
The same article governs the carry-forward of depreciation. Two rules are planned for the non-professional landlord, according to the text tabled:
- The existing stock. Depreciation booked before 1 January 2027 and left undeducted could be deducted from financial years closed from 1 January 2027 until 31 December 2036, up to half of the taxable result (after the cap is applied).
- Future excesses. For financial years closed from 1 January 2027, depreciation that could not be deducted because of the cap would no longer be deductible in the following years: it could therefore no longer be carried forward.
The text tabled therefore restricts the carry-forward. The second rule is the heaviest for a tourist furnished rental: whatever exceeds the annual cap would be lost.
A fictitious example to measure the gap
In a simplified fictitious example, depreciation of €8,000 a year would be brought down to €5,000 deductible, that is €3,000 more taxable result each year. The assumptions are yours to replace with your own figures:
| Today (real regime, no cap) | Text tabled (tourist furnished rental) | |
|---|---|---|
| Depreciation calculated for the year | €8,000 | €8,000 |
| Deductible depreciation | €8,000 | €5,000 at most |
| Non-deductible part | €0 | €3,000 |
| Carry-forward to following years | Under the current rules of article 39 C (not re-read here) | No, for financial years closed since 1 January 2027 (rule 2 above) |
This is a Majordia calculation based only on the €5,000 cap, for illustration. The 1.5% rate may limit it further, but the extract we read does not say what base it is calculated on: ask your accountant to redo the calculation with your documents. The extra tax depends on your tax bracket and your levies, which we do not simulate here.
Who is affected, and who is not?
The text targets the non-professional furnished landlord who depreciates under the real regime. As we read the text and the service-public.gouv.fr sheet:
| Your situation | Effect of the text tabled |
|---|---|
| LMNP at the real regime, tourist furnished rental | Cap of 1.5% and €5,000 a year per tax household |
| LMNP at the real regime, other furnished letting | Cap of 2.5% and €7,000 a year per tax household |
| Micro-BIC (flat-rate regime for industrial and commercial profits) | Micro-BIC applies a flat-rate allowance for costs, with no depreciation deducted (service-public.gouv.fr); article 7 only deals with depreciation, so as we read it there is nothing to cap |
| Professional furnished landlord (LMP) | The cap targets the activity "not carried out on a professional basis": LMP is not covered by this rule |
In the text tabled, we found no provision on furnished letting other than article 7 (search for the terms "meublé" and "micro-BIC"). To know whether you are under micro-BIC or the real regime, see our guide to declaring furnished rental income, and for the boundary between LMNP and LMP, our article on the professional landlord status.
Where does the text stand at the Assemblée nationale?
The text is not voted. The 2027 finance bill was tabled at the Assemblée nationale on 1 October 2026 (no. 3210). According to the Assemblée's official page, the floor examination of the first part, the revenue part, began on 13 October and ran until 19 October; it resumes from 27 October to 2 November, and the solemn vote on this first part is scheduled for the afternoon of Tuesday 3 November 2026. We found no floor vote on article 7 to date, but we did not re-read all the reports of past sittings: check on the Assemblée's website.
Two amendments concerning article 7 carry the mention "Adopté" (adopted) on the documents published by the Assemblée, after examination in the finance committee:
- I-CF1588 would exclude from the cap, and from the carry-forward rules, furnished properties let under a furnished residential lease governed by the law of 6 July 1989 (titles Ier bis and Ier ter) and those let to students, to people under 30 in training or on an internship or to holders of a professionalisation or apprenticeship contract. Tourist letting is not on the list.
- I-CF776 would add that the depreciation of a tourist furnished rental "that the taxpayer acquires from 1 January 2027 cannot be allowed as a deduction" (our translation). The operative wording uses the acquisition date; the short statement of reasons speaks of "new lettings of tourist furnished rentals from 1 January 2027" (our translation), which is not quite the same thing: the final text will decide.
Adoption in committee is not adoption of the text: these amendments must still be voted by the Assemblée, then the text continues its parliamentary journey. Treat them neither as law nor as rumour: they are proposals adopted at one stage.
From when would it apply?
The date is not set in a simple way: this is the point to watch. Article 33 of the bill provides that, unless otherwise stated, tax measures come into force on 1 January 2027, or on 31 December 2026 when they concern a tax whose taxable event is the end of the calendar year or the closing of the accounting period. Article 7, in the text read, sets no date of its own for the cap itself, whereas its carry-forward rules speak of financial years closed from 1 January 2027.
This means we cannot say today that the cap only concerns 2027 and after: the wording could also affect the financial year closing on 31 December 2026. This is our reading of the text, to be confirmed by the final text and by the tax administration's clarifications. A property bought or put on the rental market before 2027 is not, in the text tabled, protected for that reason.
And the capital gain on resale?
The government itself links the two measures. The explanatory memorandum of article 7 writes that the measure, "combined with the reintegration of depreciation in the calculation of the capital gain introduced in the 2025 finance act", should create a new balance between the tax regimes in favour of long-term letting (our translation). In other words: depreciating would be less advantageous each year, and depreciating would already cost more on resale. For resale, see our article on the capital gain of a furnished LMNP property.
What to do now, without rushing anything?
Change nothing before the vote, but prepare your figures. Five useful steps, whatever the outcome:
- Review your regime: micro-BIC or real, classified or unclassified. The service-public.gouv.fr page reminds us that the regime depends on your receipts and on the classification of the furnished property; see also our article on classification.
- Pull out your depreciation schedule: amount depreciated each year, depreciation already carried forward, holding period. It is the basis of any simulation.
- Run two simulations with your accountant: one under the current rules, one under the text tabled (1.5% and €5,000 a year), plus one for amendment I-CF776 if you plan to buy in 2027.
- Compare with micro-BIC: if your depreciation became small, the flat-rate allowance could become competitive again; Majordia's free micro-BIC allowance and loi Le Meur calculator helps with this calculation, without being advice.
- Follow the dates: the solemn vote of 3 November on the first part, then the rest of the journey. The cap will only apply once the law is promulgated.
For the rest of your landlord taxation, the pillar article on short-term rental taxation gives the current framework, and the article on the loi Le Meur and Déclaloc covers the regulation.
What Majordia can do, and what it does not
Majordia does neither your bookkeeping nor your tax return: for depreciation, turn to a chartered accountant. What Majordia does is the welcome side of your rental: a free digital welcome book with no sign-up, accessible by QR code, automatically translated into 6 languages, editable without reprinting. If the tax rules make your property less profitable, a better-prepared stay (fewer questions on the evening of arrival) remains one of the few levers that do not depend on the budget.
Key takeaways
Information
- Proposal: article 7 of the 2027 PLF (no. 3210): LMNP depreciation capped at 2.5% and €7,000 a year per tax household, and at 1.5% and €5,000 for a tourist furnished rental.
- Carry-forward: stock of earlier depreciation deductible until 2036 up to half of the taxable result; depreciation not deducted because of the cap cannot be carried forward for financial years closed since 1 January 2027.
- Status: nothing is voted. Two amendments adopted in committee (I-CF1588 would exclude long-term letting, I-CF776 would remove depreciation for tourist furnished rentals acquired from 1 January 2027). Solemn vote on the first part scheduled for 3 November 2026.
- Affected: LMNP at the real regime; micro-BIC and LMP are not covered by article 7, as we read it.
- Application date: to be confirmed; article 33 provides for 31 December 2026 for certain annual taxes.
- Not read: full reports of the sittings, the definition in article L. 324-1-1 of the code du tourisme, the base used to calculate the 1.5% rate: check against your own situation.
FAQ
Is LMNP depreciation abolished in 2027?
No, not in the text tabled: article 7 caps depreciation (1.5% and €5,000 a year for a tourist furnished rental) and restricts carry-forwards. Only amendment I-CF776, adopted in committee but not on the floor, would remove the deduction for tourist furnished rentals acquired from 1 January 2027.
Is the 2027 budget already voted?
No. The bill is being examined by the Assemblée nationale; according to its official page, the solemn vote on the first part is scheduled for 3 November 2026, and the text then continues its journey. Nothing described here is a rule that applies today.
Is micro-BIC affected?
Article 7 only deals with depreciation, and micro-BIC applies a flat-rate allowance with no depreciation deducted (service-public.gouv.fr). As we read it, it is not covered, but check with your accountant.
Am I affected if I bought before 2027?
In the text tabled, nothing protects properties bought before 2027: the cap targets the activity, not the purchase date. The acquisition date only matters in amendment I-CF776, which is not voted.
What happens to my depreciation already carried forward?
The text tabled provides that it can be deducted until 31 December 2036, up to half of the taxable result after the cap. This may change at the vote.
Should I switch to micro-BIC or sell?
No decision is useful before the voted text is known. Run simulations with your chartered accountant, including the effect on resale (reintegration of depreciation in the capital gain).
Wait for the vote, but prepare your figures
The 2027 budget changes nothing in your obligations today, but it may change the calculation of your tax as early as the coming financial year. Prepare your depreciation schedule, run your simulations, and follow the vote of 3 November. To compare micro-BIC and the real regime, try the free allowance calculator, and to prepare your guests' welcome with no account to create, the welcome book generator of the Essential offer (free, add-ons à la carte).
Image credits. Cover: photo "a building with many windows" by Natalia Gusakova, Unsplash, Unsplash licence. Photos in the text: "person using calculator at desk with coffee mug" by Towfiqu barbhuiya, Unsplash, and "a living room with a large window" by Danilo Rios, Unsplash, Unsplash licence.
