Do you let a furnished property under the real regime (the régime réel, where you deduct actual costs) and depreciate the property to pay less tax each year? When you sell, that depreciation no longer goes unnoticed: since 2025 in France, it is added back when the capital gain is calculated. For an owner who has depreciated for years, the bill can rise sharply.
This article draws on the official pages read for the occasion: the impots.gouv.fr page "Je vends un bien immobilier donné en location meublée" (I sell a property let furnished; modified on 10 July 2026), the one on property capital gains, the service-public.gouv.fr sheet "Plus-value immobilière", the sheet "Location meublée" and the minister's answer to written question no. 10097 of the Assemblée nationale, published in the Journal officiel on 24 March 2026. We could not read the text of the law on Légifrance, nor the current commentary in the Bulletin officiel des finances publiques (BOFiP, the tax administration's official doctrine).
Last verification of sources: 19 October 2026. This is not personalised tax advice: check it against your own situation, with your notaire or your chartered accountant (expert-comptable).
What changes for the capital gain on a furnished LMNP property?
The depreciation you deducted from your rents is now added to the capital gain when you sell. According to impots.gouv.fr, the 2025 loi de finances changed the way the capital gain is calculated for sales made on or after 15 February 2025: if you fall under a real industrial and commercial profits (BIC, bénéfices industriels et commerciaux) regime, the depreciation used to determine your taxable result must be added back.
Before this reform, the non-professional furnished landlord (LMNP, loueur en meublé non professionnel) could deduct the depreciation of the property from rents without it counting on resale. The impots.gouv.fr page on property capital gains says that the 2025 loi de finances "puts an end to this advantage" (our translation): the depreciation is added back when the capital gain is calculated, before the holding-period allowance.
The law in question is article 84 of law no. 2025-127 of 14 February 2025. In his answer of 24 March 2026, the minister specified that this regime applies to sales made from the day after the law was promulgated, whatever the date the property was first let, and that all the depreciation deducted under article 39 C of the code général des impôts (the French tax code) during the letting period is taken into account, subject to the holding-period allowances. A property let furnished for ten years is therefore affected for all ten years.
Who is affected, and who is not?
Only the non-professional furnished landlord who deducted depreciation under the real regime is affected. The other cases, according to the official pages:
| Your situation | Effect on resale |
|---|---|
| LMNP under the real regime, depreciation deducted | Depreciation added back to the capital gain (sales since 15 February 2025) |
| LMNP under micro-BIC (the simplified regime) | Micro-BIC gives a flat allowance for costs, without deducting expenses (service-public.gouv.fr); no depreciation is deducted, so, on our reading, there is nothing to add back |
| Professional furnished landlord (LMP, loueur en meublé professionnel) | The capital gain falls under professional capital gains (impots.gouv.fr) |
| Properties in serviced residences (student, senior, disabled-person residences) | Not covered by the measure, according to impots.gouv.fr; conditions to be checked |
To find out 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 professional landlord status.
How is the capital gain calculated?
The gross capital gain is the difference between the sale price and the purchase price, the latter being reduced, for sales since 15 February 2025, by all the depreciation deducted during the rental period. According to service-public.gouv.fr, the sale price is the price in the deed, reduced by justified selling costs (mandatory diagnostics, for example). The purchase price is the one in the purchase deed, increased by acquisition costs (actual amount or a flat rate of 7.5% of the purchase price) and works expenses (actual amount or a flat rate of 15% of the purchase price if the property has been held for more than five years).
The same sheet adds, for the non-professional landlord, that the depreciation deducted is added back to the purchase price "under certain conditions" (our translation) for sales since 15 February 2025. How depreciation combines with the flat rate for works, we have not read: ask your notaire.
Then two holding-period allowances apply, one for income tax and one for social levies (prélèvements sociaux):
| Holding period | Allowance per year (income tax) | Allowance per year (social levies) |
|---|---|---|
| Up to 5 years | 0% | 0% |
| From the 6th to the 21st year | 6% | 1.65% |
| 22nd year completed | 4% | 1.6% |
| Beyond the 22nd year | Exemption | 9% |
| Beyond the 30th year | Exemption | Exemption |
The capital gain is taxed at 19% for income tax and 17.2% for social levies, according to service-public.gouv.fr, which also mentions a surtax of 2% to 6% when the taxable gain exceeds €50,000, calculated on form 2048-IMM-SD (in practice by the notaire).
What does it mean in figures? A simplified example
In a simplified fictional example, adding back €60,000 of depreciation adds €17,448.60 of tax and social levies. Here are the assumptions (Majordia calculation, for illustration, excluding surtax, costs and works, with no exemption):
- property bought for €200,000 and resold for €280,000 after 10 years of letting;
- €60,000 of depreciation deducted under the real regime;
- allowance at 10 years: 30% on income tax (6% × 5 years) and 8.25% on social levies (1.65% × 5 years).
| Before the reform (no add-back) | After (with add-back) | |
|---|---|---|
| Gross capital gain | €80,000 | €140,000 |
| Income tax at 19% (after 30% allowance) | €10,640.00 | €18,620.00 |
| Social levies at 17.2% (after 8.25% allowance) | €12,624.80 | €22,093.40 |
| Total | €23,264.80 | €40,713.40 |
The difference is €17,448.60. The surtax of 2% to 6%, which this calculation ignores, would add further to the difference when the taxable gain is high.
Can you avoid it?
Two things reduce or remove the effect, according to service-public.gouv.fr and impots.gouv.fr:
- Long holding period: the gain is exempt from income tax after 22 years of ownership and from social levies after 30 years; the holding-period allowance also applies to the gain that has been added back;
- Other exemptions: service-public.gouv.fr lists others, under conditions, linked to the property, the seller or the buyer: check which ones may apply to you.
Should you give up depreciation?
Not necessarily: depreciation reduces your tax each year, and the reform turns it into a deferred tax rather than a tax that disappears. Service-public.gouv.fr reminds us that under the real regime you can deduct the depreciation of the purchase price of the assets (property and furniture). The right calculation compares, over the expected holding period, the tax saved each year with the extra tax on resale. This trade-off depends on when you plan to sell: it is a question for a chartered accountant, with your own figures.
If you let a furnished tourist rental, classification also changes the choice between micro-BIC and the real regime; see our article on classification and the pillar article on short-term rental taxation.
What should you do before selling?
Prepare three things with your notaire and your chartered accountant:
- The total depreciation deducted since the letting began, taken from your tax returns (liasses fiscales);
- The acquisition date, because the allowances and the 22- and 30-year thresholds depend on it;
- A tax simulation, before signing the preliminary sale agreement: the notaire prepares the return and pays the tax to the land registry office (service de la publicité foncière) (service-public.gouv.fr).
Majordia's free micro-BIC allowance and Le Meur law calculator handles the allowances on rental income, not the capital gain on resale: for a sale, turn to a professional.
Key takeaways
Information
- Rule: for sales made since 15 February 2025, depreciation deducted under LMNP at the real regime is added back to the capital gain, before the holding-period allowance (impots.gouv.fr, law no. 2025-127 of 14 February 2025, article 84).
- Scope: all depreciation deducted during the letting, whatever the date the letting began (ministerial answer published on 24 March 2026).
- Excluded: LMP (professional capital gains), micro-BIC (nothing depreciated, on our reading), some properties in serviced residences.
- Rates: 19% income tax, 17.2% social levies, surtax of 2% to 6% on taxable gains above €50,000; income tax exemption after 22 years, social levies exemption after 30 years.
- Fictional example: €60,000 depreciated over 10 years adds €17,448.60 of tax and levies (excluding surtax).
- Not read: text of the law, current BOFiP, precise conditions of the exceptions: check against your own situation.
FAQ
Is the depreciation deducted really added back when an LMNP property is sold?
Yes, under the real regime: impots.gouv.fr states that for sales made on or after 15 February 2025, the depreciation deducted must be added back when the capital gain is calculated.
Does the rule apply if my property has been let furnished since before 2025?
Yes. The minister's answer (Journal officiel of 24 March 2026) specifies that the rule applies to sales made from the day after the law was promulgated, whatever the date the property was first let, and that all the depreciation deducted during the letting period is taken into account.
Am I affected if I am under micro-BIC?
Under micro-BIC, you benefit from a flat allowance for costs and do not deduct your expenses (service-public.gouv.fr). There is therefore no deducted depreciation to add back, on our reading. Check your situation with your notaire.
What if I am a professional furnished landlord (LMP)?
The capital gain falls under professional capital gains according to impots.gouv.fr, a regime different from the one for private individuals.
Are student or senior residences affected?
Impots.gouv.fr states that certain properties located in serviced residences (student residences, senior residences, residences for disabled people) are not covered by the measure. The conditions could not be read here: check them.
Who calculates and pays the tax on the capital gain?
In practice the notaire: they prepare the return and pay the tax to the land registry office (service de la publicité foncière) for the area where the property is located, according to service-public.gouv.fr. You then report the gain on your income tax return.
Add back, simulate, then decide
The reform does not forbid depreciation: it makes you pay back, on resale, part of the advantage taken each year. Run the simulation before you sell, with your actual depreciation. For the rest of your landlord taxation, start with the free allowance calculator and the Pricing page if you want to manage your guest stays with the Essential offer (free, add-ons à la carte).
Image credits. Cover: photo "White and red wooden house miniature on brown table" by Tierra Mallorca, Unsplash, Unsplash licence. Photos in the text: "A calculator sitting on top of a table next to a laptop" by Jakub Żerdzicki, Unsplash, and "Gray key" by Kelly Sikkema, Unsplash, Unsplash licence.
