Finance Law 2025: be aware on what LMNP investors need to anticipate for their properties in Provence.

The ROSIER agency would like to offer you its expert advice to ensure that your experience in Provence goes as smoothly as possible, and that you can experience “our Lifestyle in Provence” with complete peace of mind...

The French Finance Act for 2025 provides for significant changes for Non-Professional Furnished Renters (LMNP), particularly in terms of capital gains tax.

Until the beginning of the year, LMNPs benefited from an advantageous tax regime, allowing them to depreciate the value of the property, works and furnishings, which considerably reduced the taxation of rental income. What's more, when the property was resold, this depreciation was not included in the calculation of the taxable capital gain, providing a double tax advantage.

However, from January 1st 2025, the government plans to reintegrate these depreciations into the calculation of the capital gain on the sale of a property rented as LMNP. This measure aims to correct a tax inconsistency and bring the capital gains treatment of LMNPs into line with that of other taxpayers. It is also part of a drive to rebalance the rental market, by encouraging owners to favor long-term rentals over short-term furnished rentals, which are often more lucrative but contribute to the shortage of available housing. 

In addition, parliamentary discussions are underway to harmonize the tax treatment of furnished and unfurnished rentals. In particular, a cross-party bill aims to reduce the tax advantages of furnished tourist rentals, by lowering the flat-rate allowance granted to owners. If adopted, these measures could substantially alter the tax landscape for investors in furnished rentals. 

Landlords and investors are therefore advised to keep abreast of changes in these legislative provisions, and to anticipate any potential impact on their investment strategy.

Please do not hesitate to contact the ROSIER RENTALS department if you have any questions about seasonal or long-term rentals of your property in Provence.