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LMNP 2027: the bill caps depreciation at €7,000 per year — what that changes in Paris

7 min read By the Belvie team

“End of LMNP” (non-professional furnished landlord status), “abolition of depreciation”: since the 2027 Finance Bill (PLF) was filed, the headlines keep multiplying. The text is more nuanced. Here is what it actually provides for, what remains to be voted, and what it means for a Paris owner.

A bill, not a law

Everything that follows comes from Article 7 of the 2027 Finance Bill (PLF). A bill still has to be debated, amended and voted by Parliament: the figures may change, and the measure may be modified or even dropped. Nothing is applicable today. We will update this article after the vote.

What Article 7 provides

LMNP is not abolished, and neither is the actual-expenses regime. What the text changes is the deduction of depreciation for non-professional furnished landlords:

  • Standard furnished rental: deductible depreciation limited to 2.5%, and not to exceed €7,000 per year per tax household;
  • Tourist furnished rental (meublé de tourisme): rate lowered to 1.5%, capped at €5,000 per year per tax household;
  • Exclusions: certain specialized residences are not covered (students and young people in training, people over 65, facilities and residences with services for elderly or disabled people, long-term care facilities).

What about depreciation already accumulated?

The bill provides for a transitional regime. Depreciation recorded before January 1, 2027 and not yet deducted could be deducted over fiscal years ending between January 1, 2027 and December 31, 2036, up to half of the taxable income after applying the cap. On the other hand, for fiscal years ending on or after January 1, 2027, depreciation blocked by the cap would no longer be carried forward to following years.

Why this cap?

The bill's explanatory memorandum states the goal: to bring the unfurnished rental and LMNP regimes closer together to encourage long-term rental. In parallel, the Finance Act for 2026 set up the “Jeanbrun” scheme, which allows depreciation, for unfurnished rentals and under conditions (affordable rent in particular), of 3 to 5.5% of the acquisition price, up to €12,000 per year per tax household.

A simple threshold to remember

The €7,000 cap is equivalent to a 2.5% rate applied to a depreciable value of €280,000 (7,000 ÷ 0.025). Above that value, the cap is what applies. For a tourist furnished rental, the threshold is about €333,000 (5,000 ÷ 0.015).

Illustrative example. For a Paris apartment with a depreciable value of €400,000, 2.5% represents €10,000 per year, brought down to €7,000 by the cap. The €3,000 difference would be neither deducted nor carried forward. This calculation assumes that the rate applies, as usual, to the depreciable value of the property: the exact base, and the treatment of furniture (the text refers to “depreciation of these premises”), will have to be clarified by the final text and by the tax administration.

Capital gain: a change already in force

Independently of the PLF, the Finance Act for 2025 (Law No. 2025-127 of February 14, 2025, Article 84) changed the calculation of capital gain: depreciation deducted under LMNP is added back in the calculation of the capital gain on resale, for sales made since February 15, 2025 (excluding serviced residences). The explanatory memorandum of the 2027 PLF refers to it explicitly.

Put plainly: depreciation reduces tax during the rental, but increases the taxable capital gain at the time of sale. Our guide to furnished rental taxation has been corrected accordingly.

What this changes for a Paris owner

  • You are in furnished rental under the actual-expenses regime with high depreciation: this is the most exposed case. Have your accountant calculate the effect on your situation, based on the value of your property and your rents.
  • You are under micro-BIC (simplified tax regime): Article 7 concerns depreciation, which belongs to the actual-expenses regime. Still check your situation with your adviser.
  • You are hesitating between furnished and unfurnished: taxation is only one parameter among others, and we compare the two in furnished or unfurnished rental in Paris.
  • You are thinking of buying to rent furnished: redo your rental yield calculation with and without capped depreciation.

The safest rule: change nothing until the text is voted, but prepare your numbers.

Belvie does not provide tax advice: that is the role of your accountant. What we provide is a fixed rent, guaranteed every month, whether or not the apartment is occupied. It does not change your tax regime, but it simplifies the calculation: you know your pre-tax income.

Key takeaways

  1. The 2027 PLF does not abolish LMNP: it caps depreciation (2.5% and €7,000 per year; 1.5% and €5,000 for a tourist furnished rental).
  2. It is a bill: it may be amended or not passed.
  3. Already in force: depreciation is added back into the capital gain for sales since February 15, 2025.
  4. Have your situation calculated before any decision to buy, sell or change regime.

This article is for information purposes and does not replace tax or legal advice. It describes a bill that may change: check the text in force and your personal situation with an accountant or a notary.

Official sources

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