France’s 2027 budget and property: what changes for your wealth

France’s 2027 draft budget leaves the IFI real-estate wealth tax and the flat tax untouched. It does, however, hit furnished rentals and opens a rare window to pass wealth on to your children. What is proposed, what could change by December, and the decisions to prepare now.

Where does the bill stand?

The government tabled the 2027 budget bill (PLF 2027) in the National Assembly on 1 October 2026. The finance committee rejected the revenue section on 9 October, so the floor debate restarts from the initial text and the amendments voted in committee are only proposals (Gérer Seul). The vote on the whole bill is expected on 17 November, followed by the Senate, with final adoption planned for late December (Tantiem).

Golden rule: nothing applies until the law is enacted. Only the 2026 finance law, enacted on 19 February 2026, is in force today.

The measures affecting real estate

Sources: Tantiem, Meilleurtaux, Tout sur mes finances.

LMNP: the end of a tax golden age

Article 7 of the bill caps depreciation, the real engine of furnished-rental returns under the real regime (LMNP, non-professional furnished landlord status). Landlords under the micro-BIC regime, professional landlords (LMP), student and senior residences and care homes are not targeted. Depreciation carried forward at 31 December 2026 would remain usable until 2036, up to half of the profit.

A worked example shows what is at stake: for a building worth €255,000 and €12,000 of rent net of charges, taxable profit would rise from €1,800 to €5,625. That is about €1,150 of extra income tax each year for a household in the 30% bracket, before social charges (Tantiem).

Watch this space: in committee, MPs voted to exclude furnished homes let as a main residence, under a student lease or a mobility lease. They also voted to abolish depreciation entirely for tourist rentals bought from 2027 (MySweetImmo). These ideas could return through amendments on the floor or in the Senate.

Gifts: six months to help your children buy

This is the most attractive measure for wealthy families. From 1 January to 30 June 2027, cash gifts would benefit from a reduced 6% rate, up to €100,000 per donor and per adult recipient under 50.

For a taxable gift of €100,000 from a parent to a child, duties would fall from about €18,200 under the current scale to €6,000. A couple can combine two donors per child. With mortgage rates close to 4%, this family contribution can make or break a purchase.

Unfurnished rentals, Jeanbrun scheme and vacant homes

The bill does not affect unfurnished rentals. The Jeanbrun scheme, successor to the Pinel and voted in February 2026, remains open until 31 December 2028. If the furnished-rental cap passes, the tax gap between unfurnished and furnished lettings will narrow considerably.

Another point from the 2026 finance law: the new tax on vacant homes applies from 2027. In high-demand areas, its rate would be 17% of the rental value in the first year, then 34%.

Our recommendations before the final vote

1. Furnished landlord under the real regime: have the impact of the cap on your 2027 income and on your carried-forward depreciation calculated. Do not sell in a rush.
2. Wealth transfer plans: prepare with your notary, from December, the gifts to be made between January and June 2027 if the measure is adopted.
3. Investors: compare furnished, unfurnished and commercial property (offices, retail) on net after-tax returns, not on the tax break of the moment.

Frequently asked questions

Does the IFI wealth tax change in 2027?

No, the initial bill changes neither the IFI nor the flat tax.

Is LMNP status being abolished?

No. The status remains, but depreciation would be capped for landlords under the real regime.

When will the 2027 budget be final?

The law must be enacted by 31 December 2026 at the latest to take effect on 1 January 2027.

Looking to sell a furnished property or reinvest before 2027? Browse our investment buildings or request a confidential valuation. This article is for information only: consult your notary or tax adviser about your own situation.