Since the Pinel tax incentive scheme ended on December 31, 2024, property investors in France have had to consider alternative tax arrangements for rental investments in 2026. Six main options are available: Non-Professional Furnished Rental Landlord status (Loueur en Meublé Non Professionnel or LMNP), the Jeanbrun scheme (Relance logement), the Denormandie scheme, the property income deficit mechanism (déficit foncier), the Malraux scheme and Loc'Avantages. LMNP applies to furnished rentals and, subject to eligibility, offers either the micro-BIC tax regime with a standard 50% allowance for conventional long-term furnished rentals or the actual expenses regime, under which certain expenses and depreciation can be deducted. Since the 2025 tax reform, depreciation previously deducted may, subject to exceptions, be taken into account when calculating capital gains tax upon resale. Introduced in 2026, the Jeanbrun scheme provides tax depreciation for certain new or substantially renovated properties in multi-unit residential buildings, rented unfurnished for at least nine years and subject to rent and tenant income limits. The Denormandie scheme offers an income tax reduction for purchasing and renovating older properties in eligible municipalities, provided renovation work represents at least 25% of the total project cost. The property income deficit mechanism allows eligible expenses and renovation costs to be deducted from property income and, subject to conditions, from overall taxable household income, generally up to €10,700 per year. The Malraux scheme offers tax reductions for eligible restoration work on properties in certain protected heritage areas. Loc'Avantages provides a tax reduction for renting an unfurnished property at a regulated affordable rent under an agreement with the French National Housing Agency (ANAH). Each mechanism has different conditions regarding rental type, commitment period, renovation work, income limits and taxation. Investors should therefore consider their tax situation, budget, rental profitability, regulatory obligations and long-term property value. Specializing in furnished rentals since 1999, Lodgis helps landlords estimate rental prices, find tenants and manage their rental properties in Paris and major French cities.
The Pinel tax incentive scheme ended on December 31, 2024, marking a turning point for property investors who wanted to benefit from an income tax reduction by purchasing newly built accommodation to rent out. However, the end of this scheme does not mean that rental property investment opportunities have disappeared.
What are the best alternatives to the Pinel scheme in 2026? Non-professional furnished rental landlord status (LMNP), the Jeanbrun scheme, the Denormandie scheme, property income deficits and the Malraux scheme are among the solutions available to investors seeking potential tax advantages, subject to eligibility requirements.
The right choice depends on several factors: your budget, tax situation, property type, profitability objectives and intended investment holding period.
Specializing in furnished rentals and rental property management since 1999, Lodgis supports property investors with renting out their accommodation and maximizing the value of their real estate assets. Discover the main schemes available in 2026, their advantages and limitations, and our advice for choosing a strategy suited to your project.
Introduced in 2014, the Pinel scheme was a French property tax incentive designed to encourage the construction of new housing in areas with particularly strong rental demand.
It allowed investors to benefit from an income tax reduction in exchange for purchasing an eligible property and committing to rent it unfurnished for a minimum period of six or nine years, with the possibility of extending the commitment to twelve years.
To benefit from this tax advantage, property owners had to meet several conditions, including:
The tax reduction rates varied according to the investment year, rental commitment period and property characteristics.
The Pinel scheme was gradually scaled back before ending definitively on December 31, 2024.
Since January 1, 2025, new investments have no longer been eligible for the Pinel tax incentive.
However, investors who purchased an eligible property before that date can continue to benefit from the tax reductions granted under the scheme, provided they comply with their existing commitments.
The end of Pinel encourages investors to consider other strategies, such as purchasing older properties, renovating accommodation, investing in furnished rentals or using newer tax schemes for private landlords.
Several options allow investors to continue developing rental property projects following the end of Pinel. Some offer a direct tax reduction, while others allow eligible expenses or depreciation to be deducted from taxable income.
Non-Professional Furnished Rental Landlord status (Loueur en Meublé Non Professionnel or LMNP) is a particularly attractive alternative for investors looking to generate rental income while benefiting from a suitable tax framework.
Unlike Pinel, LMNP is not limited to newly built accommodation. It can apply to older or new apartments, provided they are rented furnished and the conditions for LMNP status are satisfied.
Income from furnished rentals is taxed under the Business Income category (Bénéfices Industriels et Commerciaux or BIC), rather than as property income (revenus fonciers).
Two main tax regimes are available:
The actual expenses regime can therefore significantly reduce taxable rental profits. However, its advantages depend on the rental income received and the deductible expenses and depreciation involved.
Important: since February 15, 2025, depreciation deducted by LMNP landlords under the actual expenses regime has generally been taken into account when calculating property capital gains upon resale, subject to certain exceptions. Investors should therefore evaluate the tax consequences throughout the entire investment period.
Furnished rentals also offer several advantages in terms of tenant demand.
They can help landlords:
Depending on local market conditions and the property's characteristics, a furnished apartment may also command a higher rent than a comparable unfurnished property. However, this potential advantage must be considered alongside the cost of furnishing the apartment, replacing equipment and complying with any applicable rent control regulations.
LMNP status may appeal to property owners wishing to:
Unlike the former Pinel scheme, LMNP does not provide an automatic income tax reduction. Instead, it offers ways to influence how rental income is taxed.
For more information, consult our guide to furnished rental taxation.
Lodgis supports landlords with furnished rentals in Paris and major French cities.
Our teams advise property owners on positioning their accommodation in the rental market and assist them in finding tenants.
Depending on the package selected, you can also delegate property viewings, check-in and check-out inspections, or the day-to-day management of your apartment.
Introduced by the French Finance Act for 2026, the Jeanbrun scheme, also known as "Relance logement" or the "private landlord tax status", is one of the new alternatives to the Pinel scheme.
Its objective is to encourage private rental property investment by introducing a tax depreciation mechanism for certain properties rented unfurnished.
Unlike Pinel, which primarily provided a tax reduction calculated on the property's acquisition price, the Jeanbrun scheme allows eligible investors to deduct part of a property's qualifying value from their property income each year.
This depreciation mechanism helps reduce taxable rental income, within the limits established by the regulations.
The amount of the deduction depends on factors including the type of investment and the level of rent charged.
Subject to eligibility requirements, the scheme applies to properties located in multi-unit residential buildings that are:
For investments in older properties, specific requirements apply to the nature and amount of renovation work and the property's energy performance after renovation.
The scheme applies to eligible investments made between February 21, 2026 and December 31, 2028, under the rules currently in force.
To benefit from the Jeanbrun scheme, the property owner must generally:
Three rental categories are available: intermediate, social and very social rental housing.
The main advantage is the ability to deduct qualifying depreciation from taxable property income.
This mechanism may be attractive to investors wishing to build a long-term rental property portfolio.
However, the scheme also involves relatively strict requirements: a nine-year rental commitment, rent ceilings, tenant eligibility criteria and restrictions on eligible properties.
The Jeanbrun scheme is therefore primarily aimed at investors planning long-term unfurnished rentals, rather than those focusing on conventional furnished rentals.
Before investing, review the detailed eligibility requirements on the official French government website.
The Denormandie scheme is another alternative to Pinel for investors looking to purchase and renovate an older property.
While Pinel mainly encouraged investment in newly built accommodation, Denormandie is designed to support the renovation of existing residential buildings in certain municipalities.
The scheme provides an income tax reduction calculated on the eligible total investment cost, within the applicable legal limits.
In mainland France, the tax reduction rates are generally:
The tax benefit is subject to ceilings and compliance with all the scheme's eligibility requirements.
To benefit from the Denormandie tax reduction, investors must generally:
The scheme is currently available for eligible investments made up to December 31, 2027.
The Denormandie scheme may interest investors wishing to purchase an older apartment requiring substantial renovation, particularly in towns and cities involved in urban revitalization programs.
The renovation work may improve the property's energy performance, comfort and long-term value.
However, the cost and duration of the work, together with any technical constraints, must be included in profitability calculations.
Denormandie is particularly suitable for projects combining rental investment with the renovation of an existing property in an eligible municipality.
The property income deficit mechanism (déficit foncier) may interest investors purchasing older properties to rent unfurnished.
Subject to certain conditions, it allows qualifying expenses and renovation costs to be deducted from property income.
When a landlord using the actual expenses tax regime incurs deductible expenses exceeding the rental income received, a property income deficit may arise.
This deficit may be offset against other property income and, for the portion meeting the legal requirements, against the household's overall taxable income.
The general annual deduction limit against overall taxable income is €10,700, excluding special circumstances.
Amounts that cannot be deducted immediately may, depending on their nature, be carried forward against property income in subsequent years.
Eligible expenses may include:
However, construction, reconstruction and extension work are generally not deductible under the same rules.
It is therefore essential to distinguish between expenses that qualify for tax deductions and those that do not.
This mechanism offers several potential benefits:
In return, the property must be rented unfurnished, with the associated tax and rental requirements. Deducting a deficit against overall taxable income also requires the property to remain rented under the conditions established by law.
This option is particularly suited to investors with taxable property income who wish to carry out renovation work on an older property.
The Malraux scheme is designed for investors wishing to participate in the restoration of buildings located in certain protected heritage areas.
Under certain conditions, it offers an income tax reduction linked to eligible restoration expenses.
The tax reduction can reach 22% or 30% of eligible restoration expenses, depending on the property's location and the conditions of the project.
Qualifying expenses are capped at €400,000 over a period of four consecutive years, in accordance with the applicable rules.
This scheme may therefore offer significant tax advantages to investors planning major heritage restoration projects.
The investment must generally involve a property located in an eligible protected area, and the restoration work must comply with specific technical requirements and supervision procedures.
The landlord must also commit to renting the property unfurnished for at least nine years, under the conditions established by the regulations.
The scheme involves considerable technical, administrative and financial obligations.
The Malraux scheme is mainly intended for investors with sufficient financial capacity who wish to acquire a property with architectural or historic value.
It may support a strategy of investment diversification and long-term ownership of a distinctive heritage property.
However, it requires a detailed analysis of restoration costs and rental profitability, as the tax advantage should never be the sole investment criterion.
The Loc'Avantages scheme replaced the previous French affordable rental tax mechanism commonly known as "Loi Cosse" or "Louer abordable" for the relevant new agreements.
It allows landlords to benefit from a tax reduction in exchange for agreeing to rent their property at a level below the reference rents established by the scheme.
The property owner must sign an agreement with the French National Housing Agency (Agence Nationale de l'Habitat or ANAH).
The tax reduction is calculated on gross rental income and varies according to the level of rent charged and whether the landlord uses an approved rental intermediation arrangement.
Under the most favorable conditions, tax reduction rates may reach 65% of gross rental income.
This does not mean that the landlord automatically receives a 65% reduction in their total income tax bill.
The landlord must generally:
Applications for agreements under this scheme can currently be submitted until December 31, 2027.
Loc'Avantages combines rental property investment with the provision of accommodation at regulated affordable rents.
The scheme may interest landlords wishing to reduce their tax liability while retaining a property intended for long-term rental.
However, the rent ceilings may reduce rental income. Investors should therefore compare the expected tax savings with the difference between the regulated rent and the market rent.
Loc'Avantages applies to unfurnished rentals and is therefore not a tax incentive for apartments operated as conventional furnished rentals.
Each scheme is designed to meet different investment objectives. The following table summarizes their main characteristics.
| Scheme | Rental type | Main tax advantage | Investor profile |
|---|---|---|---|
| LMNP | Furnished | Micro-BIC allowance or deduction of eligible expenses and depreciation | Rental income and flexibility |
| Jeanbrun | Unfurnished | Tax depreciation subject to eligibility conditions | Long-term rental property investment |
| Denormandie | Unfurnished | Tax reduction for older properties requiring renovation | Property investment involving renovation |
| Property income deficit | Unfurnished | Deduction of qualifying expenses and renovation costs | Landlords with taxable property income |
| Malraux | Unfurnished | Tax reduction for qualifying heritage restoration work | Heritage property investors |
| Loc'Avantages | Unfurnished | Tax reduction linked to regulated affordable rents | Long-term rentals at controlled rents |
Key takeaway: these schemes do not all provide the same type of tax advantage. Some offer direct tax reductions, while others reduce taxable income. Their eligibility and compatibility requirements must be checked for each investment project.
The best alternative to the Pinel scheme primarily depends on your real estate investment strategy.
LMNP status may be particularly attractive.
It allows investors to purchase new or older accommodation while benefiting from the tax rules applicable to furnished rentals.
This approach may suit investors targeting students, employees relocating for work and expatriates.
It remains essential to choose the right location, determine an appropriate rental price and assess the project's expenses and tax implications.
The Jeanbrun scheme deserves particular consideration.
Subject to eligibility, it allows part of the investment to be depreciated for tax purposes while building a long-term property portfolio.
However, investors must take into account the nine-year rental commitment and the applicable rent and income ceilings.
The Denormandie scheme and the property income deficit mechanism are two options worth exploring.
Denormandie may be suitable for projects meeting the scheme's requirements, particularly regarding location and renovation work.
Property income deficits may interest landlords wishing to deduct certain renovation expenses from their taxable property income.
The Malraux scheme may suit a strategy focused on restoring and enhancing the value of a property in a protected heritage area.
However, the investment should be considered over the long term and supported by a thorough financial analysis.
Loc'Avantages may be suitable if the rent ceilings and rental commitments are consistent with your strategy.
In every case, taxation should not be the only criterion when choosing a property investment.
Rental demand, location, property condition, acquisition costs, potential renovation work and resale prospects should also be considered.
Taxation is an important component of rental investment profitability, but success also depends on how effectively the property is marketed and managed.
Since 1999, Lodgis has supported landlords with furnished rentals in Paris and major French cities.
Our expertise enables us to help investors make the most of their real estate assets and successfully market their accommodation.
Furnished rentals meet the housing needs of a diverse range of tenants, including students, young professionals, expatriates and employees relocating for work.
Lodgis understands this market and helps property owners find suitable tenants for their accommodation.
Depending on your chosen package, Lodgis can assist with:
Our objective is to support you throughout the rental process and contribute to the effective management of your property investment.
Whether you simply want to find a tenant or delegate the day-to-day management of your apartment, Lodgis offers several levels of service.
Our rental property management packages are available from 3.9% including VAT of rental income, depending on the package and services selected.
You can therefore choose the level of support best suited to your needs and availability.
There is no single solution suitable for every investor. LMNP status may appeal to investors wishing to rent furnished accommodation, while the Jeanbrun, Denormandie and Loc'Avantages schemes apply to unfurnished rental projects meeting specific requirements.
The best choice depends on your tax situation, budget and long-term property investment objectives.
No. The Pinel scheme ended on December 31, 2024. New investments can no longer qualify for this tax incentive.
However, landlords who invested before that date can continue benefiting from the relevant tax reductions, provided they meet the applicable conditions.
LMNP and Pinel use different tax mechanisms.
Pinel offered an income tax reduction in exchange for an eligible rental property investment meeting specific requirements.
LMNP allows landlords, depending on their chosen tax regime, to benefit from a standard allowance or deduct qualifying expenses and depreciation.
Which approach is more advantageous depends on the investor's tax situation and property project.
The Jeanbrun scheme, also known as Relance logement, is a tax mechanism introduced in 2026 that allows eligible landlords to deduct depreciation from certain property income.
It applies in particular to new properties or older properties undergoing major renovation, located in multi-unit residential buildings and rented unfurnished for at least nine years.
Yes. Several tax mechanisms apply to older properties.
Denormandie offers tax reductions for certain investments involving renovation work.
Malraux applies to qualifying heritage restoration projects, while property income deficits allow certain expenses to be deducted under the applicable conditions.
LMNP is one of the main tax frameworks applicable to non-professional furnished rentals in France.
Rental receipts are taxed as business income (BIC), with different rules depending on whether the landlord uses the micro-BIC or actual expenses regime.
By contrast, the Denormandie, Jeanbrun, Malraux and Loc'Avantages schemes require unfurnished rentals under their respective regulations.
Lodgis has specialized in furnished rentals and rental property management since 1999.
The agency supports landlords with rental price estimates, property marketing, tenant searches and, depending on the package selected, the day-to-day management of their accommodation.
The end of the Pinel scheme does not mean that tax advantages for rental property investment have disappeared.
In 2026, several alternatives can help investors build their real estate assets:
Each solution has its own conditions and is designed to meet different investment objectives.
Before committing to a project, it is advisable to assess overall profitability, rental requirements, possible renovation work and the short- and long-term tax consequences.
Would you like to invest in furnished rentals or optimize the rental of your apartment?
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