The tax deduction on unclassified tourist rentals drops to 30% with a cap of €15,000 in revenue starting from the 2025 income. This change in the regime redistributes the cards for any investor positioned in short-term rentals. The temporary doubling of the deductible property deficit (from €10,700 to €21,400) for energy renovation work remains active until the end of 2025, which opens a narrow but very profitable window for energy-intensive properties.
Doubling of the property deficit and energy sieves: the calculation that few investors consider
The temporary measure raising the property deficit cap to €21,400 per year for energy improvement work changes the game for properties classified as F or G. Specifically, an investor who buys an energy-intensive property rented unfurnished can deduct double the usual amount from their overall income, provided that the work aims to improve energy performance.
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This mechanism absorbs a significant part of the cost of the work through the tax reduction. For a property acquired with a discount related to its energy label, the combination of a reduced purchase price and increased property deficit yields a net return higher than that of a recently purchased property at full price.
We recommend prioritizing condominium lots where a vote for comprehensive renovation work is already scheduled. The schedule of general meetings then becomes a sourcing tool: a property for which the condominium has voted for external insulation allows for the accumulation of collective work shares and private work in the calculation of the deficit.
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Note: this doubling expires at the end of 2025. Any investment aiming for this advantage must be completed (signature of the authentic deed and commitment to the work) before this deadline. After this date, it will revert to the standard cap of €10,700.
Rental taxation 2025: arbitration between unfurnished and furnished rentals
The reform of the taxation of furnished tourist rentals imposes a precise technical arbitration. Before the 2025 income, an unclassified furnished tourist rental benefited from a 50% deduction up to €77,700 in revenue under the micro-BIC regime. Now, the deduction drops to 30% with a cap of €15,000. The net profitability after tax of an unclassified seasonal rental deteriorates significantly.
For furnished rentals classified in relaxed zones, the removal of the additional 21% deduction closes an advantage that could reach a total deduction of 92% on rents. Investors positioned in these niches must recalculate their net tax yield without this bonus.
At the same time, long-term unfurnished rentals regain relative appeal thanks to the doubled property deficit mentioned above. The arbitration can be summarized as follows:
- Classic furnished rental (one-year lease, LMNP under actual) remains relevant if the occupancy rate is high and the depreciation charges are optimized, but keep an eye on the legislative evolution of the LMNP status
- Unfurnished rental with energy renovation work generates an immediate tax advantage through the doubled property deficit, particularly suited for high-income taxpayers
- Unclassified seasonal rental loses its tax advantage and is only justified in areas with very high tourist pressure where rents offset the increased tax burden
We observe that several investors are shifting their properties from short-term rentals to mobility leases or long-term furnished rentals to secure the tax regime. It remains possible to discover advice on Immo et Moi to refine these arbitrations according to your asset situation.
Financial structuring: usury rate, loan duration, and asset structuring
The cost of mortgage credit has significantly increased compared to the historically low levels known until 2022. The usury rate, regularly updated, has not compensated for this increase for borrowers. Borrowing capacity has decreased at constant income.
In this context, two technical levers deserve attention:
- Extending the loan duration beyond 20 years reduces monthly payments but increases the total cost of credit. This choice is only justified if the monthly cash flow differential is reinvested or if the property generates a rental yield higher than the additional interest cost
- Using a bullet loan, backed by a life insurance contract, remains relevant for investors who already have a significant financial asset. The capital repayment occurs at maturity, maximizing the deductibility of interest throughout the loan term
- Delegating borrower insurance can reduce the overall effective rate by several dozen basis points, especially for standard risk profiles
A often overlooked point: legal structuring. Acquisition via an SCI taxed under corporate tax allows for managing the tax result by deducting the depreciation of the property, which the SCI taxed under personal income tax does not allow. This choice commits to the long term (the capital gain upon resale is calculated on the net accounting value, not on the purchase price), but it suits capital accumulation asset strategies.
Geographical targeting: rental tension and net yield
Medium-sized cities where rental demand remains around dynamic employment basins offer higher net yields than large metropolises. The acquisition price remains moderate, and the low vacancy rate compensates for a slower capital appreciation.
The determining criterion is not the price per square meter, but the ratio between the annual net rent and the total acquisition cost (price, notary fees, work). A property purchased at a discount in a medium-sized city with high rental tension often outperforms a Parisian apartment whose gross yield struggles to exceed a few percentage points.
We recommend cross-referencing three data points before any commitment: the municipal vacancy rate, the evolution of the active population over five years, and the median rent level compared to the median acquisition price. These indicators, accessible through public data and local rent observatories, allow for filtering real opportunities.
The real estate investment market in 2024-2025 rewards precise technical setups. The window for the doubled property deficit is closing, the taxation of furnished tourist rentals is tightening, and the legal structuring of assets weighs as much as the choice of property. Every rental investment decision must integrate these fiscal and financial parameters even before searching for the property.