Buying an apartment to rent it out is one thing. Reducing the tax bill on the income generated by this property is another. Real estate tax exemption relies on specific mechanisms, each tailored to an investor profile and a type of property. Choosing the wrong scheme can neutralize the expected advantage or even create a financial burden for several years.
Doubling the property deficit: the tax window to exploit before 2027
Among the least highlighted levers, the increased property deficit remains underutilized. The principle is simple: when deductible expenses (works, loan interest, insurance) exceed the rents received, the difference can be deducted from the overall income.
The usual ceiling for this deduction is €10,700 per year. For owners who carry out energy renovation works that allow a property to move from the status of thermal sieve (labels F or G to E or better), this ceiling rises to €21,400 per year. This increase, initially planned until the end of 2025, has been announced to be extended until December 31, 2027.
In practical terms, an investor who owns an old property classified as F can undertake major renovations (insulation, heating system change) and deduct double the usual amount from their taxable income. For those who were hesitating between selling a thermal sieve and keeping it, the profitability calculation changes radically with this doubled ceiling. Incorporating the tax gain into the internal rate of return of the project can sway the decision.
To better compare the schemes suited to your situation, you can access Immopedia for tax exemption and simulate different scenarios before committing.
Loc’Avantages scheme: tax reduction indexed to the rent level
Loc’Avantages operates on a principle that traditional schemes do not exploit in the same way: the lower the rent charged compared to the market, the higher the tax reduction. The owner signs an agreement with the Anah (National Housing Agency) and commits to renting at a level below the local market price, to tenants with income caps.
There are three levels of discount, each associated with an increasing tax reduction rate. Using rental intermediation (management by an approved association, for example) further increases the tax advantage.
Wondering why this scheme remains discreet? Because it requires accepting a reduced rent, which deters many investors focused on gross yield. The tax reduction partially compensates for the rent discount, but the calculation must be done carefully, taking into account the marginal tax rate of each taxpayer.
LMNP and depreciation: the mechanism that reduces tax without niche ceiling
The status of non-professional furnished rental (LMNP) allows the depreciation of the property, furniture, and acquisition costs to be deducted from rental income. This mechanism is not a tax reduction in the strict sense: it decreases the taxable base of BIC (industrial and commercial profits) income derived from furnished rentals.
The main advantage of LMNP under the real regime is that depreciation can bring the taxable result to zero for several years. Unlike tax reduction schemes (which fall under the global ceiling for tax niches), LMNP depreciation does not fall under this ceiling.
In practice, an investor who buys a furnished studio to rent can pay no tax on their rents for a significant period, simply due to the accounting mechanics. The trade-off: meticulous accounting is required, often with the help of an accountant, and the choice of the real regime must be made from the outset.
Deductible expenses in LMNP under the real regime
- Loan interest and banking fees related to the financing of the property
- Notary fees, amortized over the duration of property ownership
- Co-ownership charges, property tax, non-occupant owner insurance
- Fees for the accountant and rental management costs
Malraux and old heritage: a powerful lever for highly taxed taxpayers
The Malraux scheme targets a specific profile: investors with a high marginal tax rate, willing to finance restoration works in protected sectors or degraded old neighborhoods. The tax reduction applies to the amount of complete restoration works of a building.
The Malraux law is exempt from the global ceiling for tax niches. It is one of the few real estate schemes to offer this particularity, making it a particularly suitable tax exemption tool for taxpayers already close to the ceiling with other investments.
The downside: the amounts involved are often high, the works lengthy, and the choice of property geographically limited. A Malraux investment cannot be decided on a whim. It is necessary to check the exact location (remarkable heritage site), the nature of eligible works, and the solidity of the developer or operator managing the restoration.
Combining schemes: what works and what blocks
There is nothing preventing the accumulation of several tax exemption mechanisms, provided they relate to different properties. An investor can very well own a furnished property under LMNP, an old property under property deficit, and an apartment under Loc’Avantages.
The real ceiling to watch remains that of tax niches, set at €10,000 per year for most schemes. Some mechanisms (Malraux, LMNP depreciation) escape this, allowing for the structuring of a real estate portfolio where each property occupies a different tax box without saturating the ceiling.
- The increased property deficit for energy renovations can be combined with other classic rental investments
- The LMNP under the real regime does not fall under the ceiling for tax niches
- Loc’Avantages and Malraux can coexist in the same portfolio if they relate to distinct properties
The temptation to multiply schemes without coherent asset management remains the most frequent trap. Each tax commitment binds the owner for several years, with strict rental and holding conditions. A poorly calibrated decision from the start can turn a tax advantage into a management constraint for a decade.
