France introduces new tax incentives for rental property investment

France is offering new fiscal incentives to encourage private investment in the rental housing market to address the housing crisis.

The ‘Jeanbrun’ status, named after the Minister of Housing and established by the 2026 finance law, allows investors to purchase new or existing properties anywhere in France. To qualify, properties must be rented as a primary residence for at least nine years at rents below market rates to tenants meeting specific income thresholds. This scheme allows investors to deduct a portion of the property price from their taxable rental income, calculating depreciation on 80% of the acquisition cost.

Alternatively, the Intermediate Rental Housing (LLI) scheme offers different advantages, such as a reduced VAT rate of 10% and total property tax exemptions for 15 to 20 years. Unlike the Jeanbrun status, the LLI scheme is strictly limited to ‘tense zones’—areas where demand exceeds supply, such as Paris, Lyon, and Marseille. It requires the purchase of new housing to be rented as a primary residence for a minimum of 15 years.