The 2027 budget targets the tax on your rents. Your capital gain has already changed.
The draft 2027 budget aims to limit depreciation on furnished lets, landlords' favourite tax advantage. Should you sell before 1 January? The answer depends less on the budget than on the capital gain, which the law already made heavier in 2025.
What article 7 of the draft budget plans
A non-professional furnished landlord (LMNP) taxed on actual income can deduct each year a share of the value of the property, excluding the land: this is depreciation. Depending on the property, it represents 3 to 4% of that value a year, and is often enough to wipe out the tax on the rents.
Article 7 of the 2027 finance bill, tabled on 1 October 2026, would limit this deduction to 2.5% of the value a year, up to €7,000 per tax household. For furnished holiday lets, the cap would be 1.5% and €5,000. Undeducted depreciation could no longer be carried forward indefinitely: amounts built up before 2027 would remain usable until 31 December 2036, up to half of each year's profit. The initial text leaves student residences, senior residences and care homes for the elderly outside the cap.
What has been voted, and what has not
Many articles present these caps as settled. They are not:
As of 20 October 2026, article 7 has not been voted. On 8 October, the finance committee adopted two amendments: one took year-round furnished lets (main-residence lease, student lease, short-term mobility lease) out of the cap, the other abolished all depreciation for furnished holiday lets bought from 2027. But the committee then rejected the whole first part of the budget, on 9 October: the debate in the chamber starts again from the government's text. The vote on this first part, scheduled for 20 October, has been announced as postponed to 27 October. The Senate will follow, and a final vote is expected in December.
Three outcomes therefore remain possible: the government's text, a version that spares year-round letting and mainly targets furnished holiday lets, or the deletion of the article, which several parliamentary groups are calling for.
The 2027 budget will decide the tax on your rents. The tax on your capital gain is already set.
What has already changed: the capital gain
For anyone wanting to sell, the real change dates from the 2025 finance act. For sales completed since 15 February 2025, depreciation deducted during the letting period is subtracted from the purchase price to calculate the capital gain. The more a landlord has depreciated, the larger their taxable gain. Student residences, senior residences and care homes for the elderly are exempt from this rule.
The capital gain is still taxed as an individual's: 19% income tax and 17.2% social charges, with allowances for the length of ownership (income tax exemption after 22 years, social charges exemption after 30 years). Furnished rents, for their part, have borne 18.6% social charges since 2026, after the rise in the CSG.
Example with figures: the same sale, before and after February 2025
A fictitious case, simplified calculation. A furnished flat bought for €230,000 in 2016, including €30,000 for the land, is resold for €280,000 in 2026 after ten years of letting. The owner has deducted €60,000 of depreciation.
| Purchase price plus the statutory flat rates (7.5% for costs, 15% for works) | €281,750 |
| Capital gain under the pre-2025 rules | €0 |
| Depreciation subtracted from the purchase price | – €60,000 |
| Gross capital gain since 2025 | €58,250 |
| Tax and social charges after allowances (ten years) | about €16,900 |
Each year of letting adds depreciation to be added back, but also brings the holding-period allowances closer.
Selling before 2027: the right question
The planned cap affects the tax on rents in the years to come, not the sale. Selling in December to avoid it only makes sense if the capital gain is small and if the property yields little once the tax is recalculated. Three questions help to see clearly:
- How much would the cap cost? For a property whose depreciable part is worth €200,000, the deduction would fall from about €6,400 to €5,000 a year: €1,400 more taxable profit, or about €680 of tax and social charges for a household taxed at 30%.
- How much would the sale cost? Capital gain with depreciation added back, mortgage release fees, any early repayment penalties on the loan.
- Who will buy? An investor buying in 2027 will be under the new regime from day one, and will factor this tax into their price.
“The 2027 budget will decide the tax on your rents. The tax on your capital gain is already set.”
Furnished holiday lets, first in line
Short-term lets pile up the constraints: the micro-BIC flat-rate allowance reduced by the law of 19 November 2024 (30% up to €15,000 of takings for an unrated furnished let, 50% and €77,700 for a rated one), stricter local rules, and now a lower depreciation cap than for year-round letting. In tourist towns, several of these properties could come on the market at the same time: better to prepare before supply grows. See also why the 2027 tax rules will bring properties onto the market.
Our approach
We handle the sale of properties that the traditional market deals with poorly: buildings let furnished, second homes let by the season, groups of several homes. If you let several flats in the same building, see selling a building flat by flat or as a whole. The capital gains calculation is done with your notary or accountant; ours covers the price, the buyers and the timetable. Tell us about your property.
Frequently asked questions
Has the cap on LMNP depreciation been voted?
No. As of 20 October 2026, article 7 of the draft budget has not been voted in the chamber. The final text is expected in December, after it goes through the Senate.
Would properties bought before 2027 be affected?
Under the government's text, yes: the cap would apply from 2027 to all landlords taxed on actual income. Amendments propose protecting properties already bought; none has been adopted so far.
Is depreciation added back on resale?
Yes, for sales completed since 15 February 2025, except for student residences, senior residences and care homes for the elderly.
Does switching to micro-BIC solve the problem?
Under micro-BIC there is no depreciation, so nothing to add back for those years, but the flat-rate allowance is often less advantageous. This choice should be costed with an accountant.
Does a furnished home sell for more than an unfurnished one?
Not necessarily. A buyer who wants to live in it will not pay full price for the furniture, and an investor reasons with less favourable tax rules than before.
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