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Jeanbrun & LLI simulator: depreciation, 10% VAT and tax savings
The Pinel scheme ended at the end of 2024; the Jeanbrun scheme (2026 Finance Act, "private landlord status") replaces it with a radically different approach: instead of a flat-rate tax reduction, you DEPRECIATE the property — as with LMNP, but for unfurnished letting. Combined with intermediate rental housing (LLI), you also get VAT at 10% instead of 20% and a 20-year property tax exemption.
From 3% to 5.5% a year on 80% of the price, deducted from your property income (income tax + 17.2% social charges)
VAT at 10% instead of 20% on eligible new builds + 20-year property tax exemption (tax credit)
Via an SCI subject to income tax — 9-year letting commitment, acquisitions 2026-2028
The simulator
Simulate your Jeanbrun + LLI investment
Enter the price, the target rent level (intermediate/social/very social), the type of property, and your marginal tax rate. The simulator applies the depreciation rates and ceilings of the 2026 Finance Law. Your data is neither stored nor transmitted.
Jeanbrun & LLI simulator
Work out the deductible depreciation under the Jeanbrun scheme and the benefits of intermediate rental housing (10% VAT, property tax credit) — Pinel's successor.
Indicative calculation, based on 2026 rules and the assumptions entered above.
Why
Why Jeanbrun is a game changer after the end of the Pinel scheme
The Pinel scheme offered a flat-rate tax reduction (up to 14% of the price, capped at €300,000) in exchange for a commitment to let at a capped rent. It ended on 31 December 2024, leaving new-build rental investment without a dedicated support scheme.
The Jeanbrun scheme, introduced by the 2026 Finance Act and in force since 21 February 2026, reverses the logic: there is no longer a direct tax reduction, but the option to DEPRECIATE the building — that is, to deduct a fraction of the property's price from your property income each year, exactly as a furnished landlord (LMNP) does, but for UNFURNISHED letting. This depreciation comes on top of the deduction of actual expenses (loan interest, property tax, works).
The benefit is twofold: the advantage follows your marginal tax rate (the higher it is, the more depreciation saves) and it also applies to the 17.2% social charges levied on property income. Reserved for homes in apartment buildings, new or renovated older properties, with a minimum 9-year letting commitment.
What the calculation shows
The 3 levers of the Jeanbrun + LLI combination
Annual depreciation = 80% of the price (the land, about 20%, cannot be depreciated) multiplied by a rate of 3% to 5.5% depending on the rent level and whether the property is new or renovated, up to €8,000 (intermediate), €10,000 (social) or €12,000 (very social) a year. This amount is deducted from your property income: at a 41% marginal tax rate, €11,000 of depreciation generates €6,510 of savings a year, including social charges.
By purchasing a new property eligible for Intermediate Rental Housing (in high-demand areas A bis, A and B1, subject to rent and tenant income ceilings), the VAT is reduced to 10% instead of 20%. On a pre-tax price of €270,000, the VAT savings amount to approximately €27,000 — an immediate gain at the time of purchase, even before any tax implications.
The LLI gives entitlement to a tax credit that neutralises property tax for 20 years. For property tax of €1,200 a year, that is €24,000 of cumulative savings over the period — direct support for cash flow, year after year.
Case study
Case study: Claire, 44, senior executive in Lyon (marginal tax rate 41%)
Claire buys a NEW €300,000 apartment in zone A, let at the intermediate level, through an SCI subject to income tax in order to combine Jeanbrun depreciation and the LLI. Here is what the simulator projects:
| Item | Amount | Over the term |
|---|---|---|
| Deductible depreciation / year | €8,400 (capped at €8,000) | €72,000 over 9 years |
| Tax saving / year (marginal rate 41% + 17.2%) | ≈ €4,656 | ≈ €41,900 over 9 years |
| LLI reduced VAT (10% instead of 20%) | — | ≈ €27,270 (immediate) |
| Property tax credit (20 years) | €1,200/year | €24,000 |
Indicative estimate — the depreciation saving assumes sufficient property income to offset it.
The total cumulative tax benefit approaches €93,000 over the period, not through a one-off tax reduction but through a stream of recurring savings fully aligned with Claire's marginal tax rate. This is exactly the profile the Jeanbrun scheme favours: taxpayers with a high marginal tax rate investing in new builds in high-demand areas.
In practice
A powerful but technical scheme, to be structured
The Jeanbrun + LLI combination calls for real structuring: choosing an SCI subject to income tax (essential for depreciation), complying with the LLI rent and tenant income ceilings, selecting an eligible programme in a high-demand area, and fitting it with your existing borrowing and property income taxation. A structuring error (SCI subject to corporation tax, ineligible zone, rent above the ceiling) loses the benefit.
Balmont Conseil is a wealth management firm and a member of ANACOFI. Run your simulation above, then let's book an appointment to structure your transaction and check your eligibility.
Frequently asked questions
What clients ask us.
Does the Jeanbrun scheme really replace the Pinel scheme?
Yes. The Pinel scheme ended on 31 December 2024. The Jeanbrun scheme, introduced by the 2026 Finance Act (in force since 21 February 2026), takes over with a different mechanism: no longer a flat-rate tax reduction, but depreciation of the property deducted from property income. Acquisitions are eligible from 21 February 2026 to 31 December 2028.
How does Jeanbrun depreciation work?
80% of the price is depreciated (the building; the land, about 20%, is excluded) at an annual rate of 3% to 5.5% depending on the rent level (intermediate / social / very social) and whether the property is new or renovated, capped at €8,000, €10,000 or €12,000 a year. This depreciation is deducted from your property income, on top of actual expenses, and reduces both your income tax (at your marginal tax rate) and your 17.2% social charges.
What is LLI and what is required to combine it with Jeanbrun?
Intermediate Rental Housing (LLI) targets new, moderately rented housing in high-demand areas (A bis, A, B1). It offers a reduced VAT rate of 10% instead of 20% and a property tax exemption through a tax credit over 20 years, in exchange for rent and tenant income ceilings. To combine LLI with the Jeanbrun depreciation scheme, the investment must be made through a company (typically a French SCI) subject to personal income tax (IR), not corporate income tax (IS).
Who is this scheme primarily for?
Taxpayers in high brackets (marginal tax rate of 41% or 45%) who invest in new builds in high-demand areas and accept a 9-year letting commitment at a capped rent. As depreciation is deducted from property income, the benefit is greater the higher the marginal tax rate and when the investor already has property income to offset. If the commitment is broken early, the depreciation deducted is clawed back.
