Furnished rental: here is how much your resale tax could be increased

The draft Budget for 2025 plans to integrate the depreciation of the property rented under LMNP in the calculation of the capital gain on sale. A measure that concerns both student accommodation and Airbnb rentals.

Hard blow for owners of furnished accommodation. Presented on Thursday October 10, the finance bill (PLF) for 2025 plans to remove one of the tax advantages for non-professional furnished rentals (LMNP). Currently, when you sell a property that you have rented in LMNP, theaccounting depreciation of this property, that is to say its loss of value over time, which you deduct from your rental income, is not taken into account in the calculation of your capital gain on sale. You therefore have less tax to pay on this capital gain. Bercy sees this “a specific tax advantage likely to maintain a shift of bare renters towards furnished rentals and thus the attrition of the supply of housing intended for the main residence, by encouraging short-term rentals with a tourist vocation..

To end this “tax bias”and put more housing back on the long-term rental market, the draft Budget for 2025 provides that the depreciation of a property rented under LMNP will now be included in the calculation of the capital gain, in the event of sale of this good. This will increase the amount of the capital gain realized and therefore the tax to pay.

A tax likely to go from simple to double

Let’s take the example of a property purchased for 350,000 euros. Its value excluding land, which amounts to 308,000 euros, is amortized over 35 years, i.e. an annual depreciation of 8,800 euros. Let’s imagine that you resell this property for 395,000 euros. Today, your capital gain will be 45,000 euros (395,000 euros – 350,000 euros). This being taxed at 19%, you will have to pay 8,550 euros in tax (19% x 45,000). If the PLF 2025 is adopted as is by Parliament, your capital gain will no longer be 45,000 euros. It will indeed be necessary to include the depreciation of the property in its calculation. If you sell it five years after purchasing it, this depreciation will amount to 44,000 euros in total (8,800 euros x 5).

You will need to deduct these 44,000 euros from your purchase price of 350,000 euros to obtain the “sincere value (of the property), after degradation” natural, as Renaissance MP Annaïg Le Meur writes in her report last July on rental taxation, which inspired this provision of the PLF. Your purchase price will thus be reduced to 306,000 euros. Hence a capital gain of 89,000 euros (395,000 – 306,000), on which you will pay 19% tax, or 16,910 euros, as you can see in the infographic below. In summary, between the current situation and the PLF 2025, the taxation of your capital gain on sale is almost doubledin our example.

Student housing, collateral damage of the PLF

“Be careful of the establishment of a punitive mechanism for all furnished investors!”alert to Capital Alexis Alban, president of Lodgis, a specialist in traditional furnished rentals, a market where “the increase in demand is in double digits every year”. Indeed, this PLF measure will apply both to furnished tourist rentals such as Airbnb and to furnished rentals to students and young professionals as a primary residence.

“Under the guise of fighting against tourist rental, which has grown significantly in recent years, the government is adding an additional tax for owners, creating significant collateral damage for students”who already have all the difficulty in the world finding accommodation, for his part scolds on LinkedIn Pierre Hautus, general delegate of the Plurience real estate transaction business association. The National Union of Real Estate Owners denounces “a regrettable confusion between tourist rental and furnished rental. A good word for the deputies and senators who are preparing to examine the PLF 2025.