The French Finance Bill 2025 (PLF 2025) has raised many questions among furnished rental investors, particularly those operating under the LMNP regime. Over recent weeks, a lot of information has circulated, sometimes in an alarmist way. Here is a clear and factual overview to help you better understand the situation.

The PLF 2025, recently presented to the Council of Ministers, addresses a sensitive issue: the taxation of capital gains when reselling properties under the LMNP regime (Article 24 of the bill)

The proposed measure would consist of reintegrating the depreciation claimed during the holding period of the property into the calculation of the taxable capital gain upon resale.

If adopted as it stands, this measure could lead to higher taxation upon resale for some investors, starting from January 1st, 2025.

• This measure has not yet been adopted
• It must be debated in the National Assembly, with an initial vote that was originally scheduled for the end of October 2024.
• The text may still be modified, amended, or withdrawn.

The Le Meur report has recently fueled many concerns, particularly regarding a potential overall challenge to the LMNP regime.

To date, the LMNP regime has not been called into question:
󠁯•󠁏󠁏 The report was not mentioned in the Prime Minister’s speech when presenting the PLF 2025
󠁯•󠁏󠁏 It does not appear in the bill currently under review

At this stage, these are merely discussion proposals intended to inform potential future debates, with no immediate legislative effect.

In summary:

• The bill has not yet been adopted and may still change.
• A similar amendment concerning short-term rentals was already rejected by the Senate in May 2024, notably due to a lack of solid quantitative data on its impact.
• There is no impact on the taxation of current rental income: the LMNP real tax regime remains unchanged.
• In the event of resale with reoccupation of the property as a primary residence (a frequent and legitimate situation), the capital gain is not taxed.
• Any potential impact would concern resale taxation only, not the ongoing operation of the rental.

Every property situation is different: holding period, depreciation level, resale or transfer plans, tax status, etc.

There is no one-size-fits-all answer, and each situation must be analyzed individually. Yet 75% of rental property owners are not using the correct tax regime, representing an average loss of more than €2,000 per year.

With the tax filing period approaching quickly, now is the right time to review your situation.

This is why CasaBooking has partnered with Nopillo, a firm specialized in tax and wealth optimization for real estate investors, to offer you a clear, independent, and personalized assessment, helping you make the right decisions at the right time.

Would you like a free appointment to analyze your personal situation?

Simply send us an email and we will connect you with a partner expert
📩 info@casabooking.com