The text is a government bill, the projet de loi de finances pour 2027, registered at the Assemblée nationale on 1 October 2026 and sent to the finance committee (commission des finances). Nothing in Article 7 applies unless Parliament adopts it and the law is promulgated.

What applies now

Today, Article 39 C of the General Tax Code (CGI), in the version in force since 1 January 2015, sets no percentage or euro ceiling on the depreciation of a home let furnished by an individual. Where the let is made directly or indirectly by a private individual, depreciation is deductible in a given year only up to the rent received minus the other charges on the property (Article 39 C II.2). Depreciation that cannot be deducted in that year may be carried forward and deducted in later years under the same limit, with no end date (Article 39 C II.3).

What Article 7 would change

Article 7 would insert a new paragraph 2 into Article 39 C I. Where a furnished let is not carried on as a profession within the meaning of Article 155 IV.2 of the CGI, the depreciation of the premises would be capped both by an annual rate and by an annual amount per tax household (foyer fiscal), with lower limits for a furnished tourist let (meublé de tourisme) under Article L. 324-1-1 I of the Tourism Code.

Furnished let, non-professionalAnnual rate limitAnnual amount limit per tax household
Current Article 39 CNoneNone, deduction capped at rent minus other charges
Proposed, standard furnished let2.5%€7,000
Proposed, furnished tourist let1.5%€5,000

The existing rent-minus-charges limit would stay. The bill amends Article 39 C II.2 so that the depreciation it refers to is the amount determined, where relevant, after the new caps have been applied. The amount limit is set per tax household, not per property, so an owner with several furnished homes would share one ceiling across them.

The caps would not apply to property in residences for students, people under 30 in training or people over 65 under Articles L. 631-12 or L. 631-13 of the Construction and Housing Code, in certain social and medico-social establishments and approved service residences for elderly or disabled people, or in long-term care establishments.

Depreciation already carried forward

Article 7 would also change the carry-forward rules for non-professional furnished lets. Depreciation booked for financial years ended before 1 January 2027 and not yet deducted could be deducted in financial years ended from 1 January 2027 to 31 December 2036, up to half of the taxable result after the new caps and the rent-minus-charges limit. For financial years ended from 1 January 2027, depreciation that could not be deducted because of those limits would no longer be deductible in later years.

Who it would affect, and from when

Article 7 draws no distinction by the owner's tax residence. Under Article 4 A of the CGI, people whose tax domicile is outside France are liable to income tax on their French-source income, and Article 164 B I.a classes income from property situated in France as French-source income. So, as the bill is drafted, a non-resident who lets a furnished home in France would face the same Article 39 C caps on that income as a resident owner.

Article 7 does not set its own start date for the new rate and amount caps. The dates it does give are in the carry-forward rules, which refer to financial years ended on or after 1 January 2027. The government's preliminary assessment says the measure would take effect when the 2027 finance law does. In its explanatory statement (exposé des motifs), the government says the aim is to bring furnished lets closer to unfurnished lets and to support long-term letting.

The cost estimate

The government's preliminary assessment of the article (évaluation préalable), published with the bill, puts the expected gain in income tax from the furnished-letting changes at €260 million in 2027, rising in later years to €330 million once fully in effect. It describes the estimate as only an order of magnitude. BFM Business reported on 1 October 2026, citing Agence France-Presse, a saving of €200 million a year. That press figure is lower than both government estimates, and the reason for the difference was not given.

What happens next

The commission des finances examines the first part of the bill from 7 to 9 October 2026. The Conférence des présidents set the deadline for chamber amendments to the first part at 5 pm Paris time on Friday 9 October. The chamber debates the first part from Tuesday 13 to Monday 19 October, with a solemn vote on the whole first part on Tuesday 20 October. The second part follows in the chamber from 27 October to 16 November, and a solemn vote on the second part and the whole bill is set for Tuesday 17 November. The Assemblée's 40-day constitutional period for its first reading expires at midnight on 17 November 2026, and the overall 70-day period at midnight on 17 December 2026. Under Article 47 of the Constitution, if Parliament has not reached a decision within those 70 days, the provisions of the bill may be brought into force by ordinance.

Article 7 sits in the first part of the bill, which covers revenue, so it comes before the 20 October vote. The Senate examines the bill after the Assemblée nationale, and Article 7 may be changed before a final text is adopted.

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Sources

Sources read 5 October 2026 (SGT).