PLF 2025: Depreciation Now Included in Capital Gains Calculation
The combined application of the Le Meur Law and PLF 2025 modifies the tax rules for non-professional furnished rentals (LMNP).
From now on, depreciation deducted during the rental period must be reintegrated into the calculation of the real estate capital gain when the property is sold.
Concrete Example
If a two-bedroom apartment in Versailles is purchased for €300,000 and resold ten years later for €444,000, with €38,000 in depreciation deducted during the rental period:
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Previously, the taxable capital gain would have been €144,000.
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Under the new rules, the taxable base becomes €182,000 (€144,000 + €38,000).
This broader taxable base mechanically increases the capital gains tax owed.
End of Tax Reduction for Accounting Fees
Another notable change concerns investors affiliated with an approved management organization (OGA).
The previous income tax reduction equivalent to two-thirds of accounting fees has been abolished.
However, these accounting expenses remain deductible as charges under the LMNP real regime.
Reform of the Micro-BIC Regime
The reform of the micro-BIC regime represents one of the most significant changes for furnished rental investors.
Standard Furnished Rentals
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Flat-rate deduction reduced from 50% to 30%
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Revenue ceiling lowered from €77,700 to €15,000
Classified Tourist Rentals and Guesthouses
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Deduction reduced from 71% to 50%
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Revenue ceiling lowered from €188,700 to €77,700
Consequences
The taxable base increases for many landlords, making the micro-BIC regime significantly less attractive compared to the real tax regime.
New Energy Performance Requirements for Seasonal Rentals
Private individuals wishing to operate short-term rentals must now offer a property rated between A and E on the DPE (energy performance certificate).
If the property does not comply, the municipality may refuse the change-of-use authorization where such regulation applies.
Landlords have a nine-year period to comply with energy standards.
Renovation works may:
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be depreciated under the real regime,
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benefit from financial assistance such as MaPrimeRénov’,
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contribute to improving long-term asset value.
Climate and Resilience Law: Timeline Unchanged
The implementation calendar of the 2021 Climate and Resilience Law remains unchanged and continues to apply to all rental properties, furnished or unfurnished.
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Since January 1, 2025: properties rated G are banned from rental.
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From January 1, 2028: properties rated F will also be prohibited.
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By 2034: properties rated E will become unrentable.
These deadlines reinforce the central importance of energy performance in any real estate investment strategy — particularly in the furnished rental market.
Key Takeaways for Landlords
The 2025 reforms fundamentally alter the financial equation of furnished rentals:
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Higher taxable capital gains due to reintegration of depreciation
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Less attractive micro-BIC regime
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Increased importance of energy renovation
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Stronger alignment between tax strategy and environmental performance
In this evolving framework, a comprehensive wealth strategy — including tax optimization and energy compliance planning — becomes essential to preserve profitability and long-term property value.