What the Government Is Selling

The pitch is straightforward: buy a property, rent it out for nine years, and deduct a hefty chunk of the purchase price from your taxes each year. For new builds, you can amortize 3.5% to 5.5% of the property value annually, depending on the rent level you commit to. For older properties, you’ll need to invest 30% of the purchase price in renovations to qualify for slightly lower rates (3% to 4%).

The scheme allows you to deduct:
– The amortization amount (up to €12,000 per year)
– All rental-related expenses: mortgage interest, taxe foncière (property tax), management fees, and renovation costs
– Up to €10,700 of any remaining deficit against your other income (salary, pensions, etc.)

A government example shows a couple buying a €180,000 apartment with €30,000 down and a €150,000 loan. After ten years, they could pay zero tax on their rental income and deduct €16,000 from their income tax bill.

The LMNP Shadow Hanging Over Everything

Here’s where it gets interesting. For years, the LMNP status has been the go-to for savvy French property investors. It offers 2.5% to 4% annual amortization on furnished rentals, with the ability to deduct all expenses and pay no tax on rental income if your costs exceed your revenue. The key advantage? You could rent furnished properties at market rates without the social housing constraints.

The new statut de bailleur privé is clearly designed to compete with LMNP, but with a twist: it applies to unfurnished rentals and comes with strict rent ceilings. The government is essentially saying, “We’ll give you better amortization rates, but only if you help solve our social housing problem.”

Many investors who previously used LMNP are now doing the math. The new scheme offers higher amortization rates (up to 5.5% vs. 4% for LMNP), but the rent caps might mean lower overall returns. One property specialist noted that the scheme aligns with what made LMNP successful, but the conditions create a different risk profile entirely.

The Nine-Year Handcuff

The nine-year rental commitment is no joke. Break it early, and you’ll owe back all the tax benefits plus penalties. In a country where tenant protection laws already make evictions difficult, this adds another layer of inflexibility.

Consider this: what if you need to sell because of a job change, divorce, or financial emergency? The scheme does allow sales, but the buyer must continue the rental commitment. Good luck finding a buyer willing to inherit your nine-year obligation at below-market rent.

Government officials argue this stability is exactly what’s needed to encourage long-term investment in rental housing. But critics point out that nine years is a long time in an uncertain economy, especially when the scheme itself expires in 2028.

Geographic Freedom or Market Distortion?

Unlike the previous loi Pinel (Pinel law), which was restricted to specific high-demand zones, the dispositif Jeanbrun applies nationwide. The government calls this “territorial reconciliation”, allowing investment in rural areas where housing is needed but markets are thin.

The risk? Investors might cluster in areas with better growth prospects anyway, leaving struggling rural towns with empty promises. Without zoning, there’s no guarantee the €500 million in expected tax revenue will go where it’s most needed.

One housing expert pointed out that zoning, while bureaucratic, at least directed investment to areas with proven demand. The new freedom could lead to oversupply in some areas and continued shortages in others, all while costing the state billions in tax revenue.

The Temporary Nature: A Political Football

Here’s the kicker: the scheme is only guaranteed until December 31, 2028. That’s right, three years. After that, it could disappear, be extended, or be completely rewritten depending on the political winds.

This creates a perverse incentive: rush to buy before the deadline, potentially inflating prices in the short term, then face uncertainty about whether the tax benefits will continue. It’s a classic example of défiscalisation (tax reduction policy) as a political tool rather than a stable framework.

The government included it in the 2026 budget passed by 49.3 (the constitutional provision allowing budget bills to bypass normal parliamentary approval), which means it avoided extensive debate. This has raised eyebrows among fiscal policy watchers who note that durable tax policy should be more carefully considered.

Who Actually Benefits

Let’s be honest: this scheme isn’t for everyone. The sweet spot is for investors who:
– Have stable, high incomes that can benefit from the €10,700 deficit deduction
– Are comfortable with a nine-year lock-in
– Want to invest in social housing without dealing with the bureaucracy of HLM (public housing)
– Prefer unfurnished rentals to avoid the management hassles of furnished properties

For those already using LMNP for furnished rentals, the math is less clear. If you’re in résidences étudiantes (student housing), résidences seniors (senior housing), or EHPAD (nursing homes), the LMNP remains superior because those categories are exempt from the 2025 rule that reintegrates amortization into capital gains calculations.

The Verdict: Smart Incentive or LMNP Trap?

The dispositif Jeanbrun is neither pure genius nor an outright trap. It’s a calculated gamble by a government desperate to boost housing supply without spending direct public money. The amortization rates are genuinely attractive, and the ability to deduct deficits against other income is valuable for high earners.

But the constraints are real: nine years is long, rent caps limit upside, and the three-year time horizon creates uncertainty. For investors who were already considering unfurnished rentals in areas with strong rental demand, it’s a no-brainer. For everyone else, it’s worth running the numbers against LMNP and considering whether the fiscal benefits outweigh the flexibility you’re giving up.

The housing crisis won’t be solved by tax breaks alone, and this scheme risks repeating the mistakes of past niches fiscales (tax loopholes) that distorted markets without addressing root causes. But if you’re in the market for a long-term rental investment and can live with the conditions, the statut de bailleur privé deserves serious consideration, just don’t let the tax tail wag the investment dog.

Bottom line: Treat it as a bonus, not a reason to invest. If the numbers work without the tax break, the dispositif Jeanbrun makes them work better. If they only work because of the tax break, you’re betting on a temporary scheme in a market where fundamentals should rule.