What is this new “Jeanbrun” device which will replace Pinel to boost your investments? This is a radical turning point for investors. After years of tax incentives based on tax reductions, the 2026 finance law launches the “Jeanbrun” system. Based on a unique depreciation mechanism of up to 80% of the purchase price, it promises a much more economical approach than the defunct Pinel.
To counter the fall in rental supply and new construction, the government launched the Housing Recovery plan last January, which aims in particular 2 million homes built by 2030at a rate of 400,000 housing units built each year. What does it consist of? In a set of fiscal, financial and regulatory measures.
Investing in rental property
The Jeanbrun system, or Housing Recovery, may be of interest to all individuals wishing to invest in rental accommodation and concerns housing located in collective buildings, both new and old real estate, provided that work representing at least 30% of the value of the property. Part of the purchase price of the property and all rental-related charges such as work, loan interest and property tax are deductible from rent.
The conditions? The property, empty, must be in a collective building and rented as a main residence for a period of 9 years (based on the Pinel law) while respecting a rent ceiling (intermediate, social, very social). Please note that rentals within the immediate family circle are prohibited.
This is the major change compared to the Pinel law. While the latter was limited to zones A, A bis and B1 (the most tense in the local real estate market), Jeanbrun concerns the entire French territorywithout geographical restriction.
Whether in Paris, the Var or Bordeaux, a person can invest in a property as long as the rent ceilings are respected. Be careful to carefully study the rental tension locally. Investment is possible for three years, until December 31, 2028.
Powerful cushioning
Depreciation is used to reduce the rental income received. The calculation is based on 80% of the overall value (purchase price, notary fees and works included) since the land, which represents 20% of the investment, is not depreciated. Note that the amount of this annual depreciation is capped depending on the rental regime chosen for the accommodation. For something new, tax depreciation amounts to 3.5% per year for intermediate rent housing capped at 8,000 euros, 4.5% for social housing capped at 10,000 euros and 5.5% for very social housing capped at 12,000 euros.
In the former, depreciation is conditional on the completion of major rehabilitation work representing at least 30% of the acquisition price of the accommodation and then amounts to 3% for intermediate rents, 3.5% for social rents and 4% for very social rent. The depreciation limit is capped at 10,700 euros per year.
These depreciations should result in the creation of a land deficit of these incomes, a clear advantage compared to the regime of non-professional furnished rental companies for example. On sale, they will reduce the acquisition price used to calculate the capital gain. Finally, this Jeanbrun device is interesting and rather suitable for high incomes wanting to lower their income taxes. The higher the tax rate, the greater the effect the system will have.
