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Real estate
Real estate: how you own it matters as much as the property itself.
The same apartment generates income, resells, and is passed on differently depending on whether it is rented unfurnished, furnished, held in a real estate investment company (SCI), or purchased as bare ownership. Here's how each ownership method will change in 2026.
Five modes of detention
The same property, five different tax regimes.
Rents are taxed according to the scale, with a 30% allowance (%) for amounts under €15,000 per year (micro-foncier), and 17.2% (%). land deficit and the Jeanbrun scheme reduces taxes.
Furnished rental (LMNP)The rents are waived by the’depreciation of the property. Since February 15, 2025, depreciation is reintegrated into the capital gain upon resale (article 150 VB of the CGI).See the page →Through a SCIFor income tax purposes, it organizes joint ownership and the transmission by shares. Under IS, profit is taxed at 15 % up to €42,500.See the page →In SCPIReal estate without management, financed by a loan or through a assurance-vie policy; rental income from buildings Europeans escape French social security contributions.See the page →
You buy the property at a discount, with no rent or taxes for 15 to 20 years., excluding IFI, and recover full ownership at the end of the usufruct (article 968 of the CGI).
Side by side
Rent, IFI (French wealth tax), inheritance.
| Fashion | Imposed rents | IFI | Estate planning |
|---|---|---|---|
| Direct, bare rental | Grading scale + 17.2 % | Property value | Full value in the estate |
| Furnished (LMNP) | Little or no depreciation, 18.6 % on the rest | Property value | Full value in the estate |
| SCI subject to income tax | Scale + 17.2 %, among the partners | Share value, debts deducted | Gift of shares, spread out over time |
| SCPI | Scale + 17.2 % (France), excluding social security contributions (Europe) | Real estate portion of the shares | Possible division of shares |
| Bare ownership | None | Excluding IFI for the bare owner | Full ownership recovered without rights at the end of the usufruct |
The capital gain on the resale of a property held directly or in a SCI subject to IR is taxed at 19 % of tax and 17.2 % of social security contributions, reduced each year after the 5th year of ownership.
Frequently asked questions
What clients ask us.
Unfurnished or furnished rental: which yields the most after tax?
Most often, furnished rentals are the preferred option, as long as depreciation offsets rental income, despite social security contributions of 18.6% instead of 17.2%. Upon resale, the deducted depreciation is added back to the capital gain since February 15, 2025: the calculation is based on the entire holding period.
What is the Jeanbrun device?
The successor to the Pinel scheme, created by the 2026 Finance Law: an unfurnished property rented for 9 years depreciates, at a rate of 3.5% to 5.5% per year, 80% of its price depending on the rent charged, up to a limit of €8,000 to €12,000 per year. It applies to purchases made between February 21, 2026, and December 31, 2028.
How to reduce the IFI (French wealth tax) on real estate assets?
Debts related to assets are deductible, bare ownership is excluded from the bare owner's taxable income, and business assets are exempt. The threshold remains €1,300,000 of net real estate assets (Article 964 of the French General Tax Code).
How can I pass on real estate to my children?
Gifting the bare ownership while retaining the usufruct: inheritance tax is levied on a fraction of the value, depending on your age (Article 669 of the French General Tax Code), and your children inherit full ownership without additional taxes. A French real estate investment company (SCI) allows you to gift shares year after year, with a €100,000 tax allowance per child and per parent every 15 years.
