Real estate tax consultation 2026 — when and why to request one

Updated 12 May 2026. Seven triggers justify a French real estate tax consultation: a rental investment, an election for corporate tax (IS), a switch to the actual-regime LMNP, a resale, a transfer to family members, an Airbnb audit, or a real estate holding company set-up. Ten tax regimes coexist — micro-foncier, actual-regime property income, SCI taxed under personal income tax (IR), SCI taxed under corporate tax (IS), actual-regime LMNP, micro-BIC LMNP, LMP, real estate holding, private capital gain, and special regimes (Denormandie, Malraux, Monuments historiques). Between two well-arbitraged scenarios on the same EUR 400,000 Paris apartment, the gap in net wealth can reach EUR 100,000 to 200,000 over 20 years. At Cabinet Hayot Expertise in Paris, we treat a consultation as a checklist of questions to anticipate before signing, not as a post-acquisition audit. This article maps the 2026 arbitrations, integrating the Le Meur law (law no. 2024-1039 of 19 November 2024), the LMNP reform of the 2025 Finance Act (article 84, codified at article 150 VB II 2° bis of the General Tax Code), the disappearance of the Pinel scheme on 31 December 2024, and the expansion of the vacant-housing tax.

Before a rental investment#

The usual mistake is to sign a preliminary sale agreement before arbitraging the acquisition structure. On a Paris investment of EUR 400,000 financed at 80%, the choice between direct ownership (revenus fonciers), an IR-taxed SCI, an IS-taxed SCI, an actual-regime LMNP, or a real estate holding changes the annual taxable result, available cash flow, exit taxation, and transmission. The consultation should ideally be triggered between bid acceptance and signing the preliminary sale agreement — two to four weeks before commitment. The opportunity cost of a poor arbitration frequently exceeds EUR 50,000 over a 10-year horizon.

Before electing IS or switching to actual-regime LMNP#

The election for corporate tax for an SCI under article 206 3 of the General Tax Code (CGI) has been irrevocable since the 2019 Finance Act: no return to IR is possible. This single decision shapes 20 to 30 years of taxation. Symmetrically, switching from unfurnished rental to actual-regime LMNP — falling under industrial and commercial profits per article 35 bis CGI — commits the taxpayer to the component-by-component depreciation mechanism and, since 15 February 2025, to the recapture of depreciation upon resale. Without prior simulation, the short-term gain can become an exit penalty.

Before a resale, transfer or Airbnb audit#

An unprepared sale triggers a capital gain computed under article 150 U CGI, with reductions for holding period (22 years for income tax, 30 years for social levies). An unanticipated transfer deprives the investor of the EUR 100,000 allowance per parent per child every 15 years (article 779 CGI) and of the dismemberment technique, a topic covered in our dedicated article on drawbacks of dismemberment of property. An Airbnb audit has become essential since the Le Meur law — micro-BIC allowance reduced to 30% for unclassified tourist rentals, threshold lowered to EUR 15,000.

Micro-foncier threshold and 30% allowance#

The micro-foncier regime applies to gross annual property income below EUR 15,000 (article 32 CGI) and grants a 30% lump-sum allowance for expenses. Above this threshold, the actual regime applies by operation of law. In 2026 this threshold has not been revalued since 1999; on an average Paris portfolio, two studios are enough to exceed it, automatically switching to the actual regime.

Actual regime and property loss (article 156 CGI)#

The actual regime allows deduction of effective expenses: loan interest (deductible only from property income), property tax, insurance premiums, management fees, provisions for co-ownership charges, and maintenance and repair works. When expenses exceed rents, the property loss excluding loan interest is deductible from global income up to EUR 10,700 per year (article 156 I 3° CGI), the surplus being carried forward against property income for the following 10 years. This mechanism remains the main optimisation lever for a heavily taxed landlord.

Property loss on energy-efficiency works#

For expenses paid between 1 January 2023 and 31 December 2025, the deduction cap was doubled to EUR 21,400 when the loss arises from energy-renovation works moving the property out of class E, F, or G into class D or better (article 156 I 3° quater CGI). Whether this scheme is extended beyond 2025 must be verified against the 2026 Finance Act at consultation time; at the date of writing, its extension is not secured. The taxpayer must retain the RGE-certified contractor invoice and the energy audit before and after works.

Tax translucency under article 8 CGI#

An IR-taxed SCI is called translucent: the company itself owes no tax; each shareholder declares their share of the result under the property income rules (article 8 CGI). It suits a family wealth structure with unfurnished rental, dismemberment, or structured joint ownership. We detail this mechanism in our dedicated article on buying back your home through an SCI, which also covers main residence ownership via SCI.

IS election under article 206 CGI, irrevocable since 2018#

The election for corporate tax (article 206 3 CGI) unlocks property depreciation and deduction of all expenses including acquisition fees. The company is taxed at 15% up to EUR 42,500 of profit and at 25% beyond. But this election has been irrevocable since the 2019 Finance Act: no return to IR is possible. Upon sale, the capital gain is computed on the net book value (thus increased by depreciation), taxed at 25% IS, and distribution of the proceeds to shareholders triggers further taxation at the 30% flat tax. Double taxation is real and must be quantified before deciding.

Depreciation vs main residence exemption#

An IS-taxed SCI loses the main residence capital gain exemption provided by article 150 U II 1° CGI. It also loses the holding-period reductions. In exchange it enables efficient capitalisation when the investor does not need immediate income. The IR vs IS arbitration depends on four parameters: marginal income tax bracket, holding horizon, intent to sell or transfer, and need for cash flow. A quantified consultation traces both curves at 10, 15, and 20 years.

Article 35 bis CGI and LMNP status#

The Non-Professional Furnished Lessor regime (LMNP) falls under industrial and commercial profits (article 35 bis CGI) where the rental concerns a furnished home meeting the minimum equipment list set by decree. LMNP status is opposed to LMP (article 155 IV CGI), which assumes receipts above EUR 23,000 and above other household business income. Under the actual regime, LMNP depreciates the structure (50 to 70 years), secondary works (15 to 25 years), and furniture (5 to 7 years), generally after componentisation by a chartered accountant. Our article on the LMNP approved management centre details accounting obligations and the impact of the 25% surcharge abolition since 2023.

Depreciation recapture on resale (article 150 VB II 2° bis)#

The 2025 Finance Act, article 84, introduced the 2° bis of paragraph II of article 150 VB CGI: for LMNP property sales occurring from 15 February 2025, the depreciation deducted from the BIC result is added back into the taxable capital gain. Concretely, an LMNP investor who depreciated EUR 80,000 over 15 years will see those EUR 80,000 added to the capital gain at resale. The depreciation benefit during the holding period is thus offset — at least partially — at exit. LMP status and managed residences (student, EHPAD, classified tourism) benefit from sector exclusions listed in BOFiP BOI-RFPI-PVI-20-10-20-30.

Micro-BIC and Le Meur law 2024-1039#

Law no. 2024-1039 of 19 November 2024, known as the Le Meur law, recalibrated the micro-BIC regime for tourist rentals from the 2025 income tax: classified tourist rental — 50% allowance, EUR 77,700 threshold; unclassified tourist rental — 30% allowance, EUR 15,000 threshold (versus 50% and EUR 77,700 previously). Classic long-term furnished rental retains a 50% allowance and EUR 77,700 threshold. The law also imposes a minimum energy performance certificate (DPE) progressively tightened for tourist rentals and grants mayors stronger powers (registration number, surface compensation in tight zones). Our analysis of LMNP in 2026 deepens the impact of this reform.

Article 145 CGI — 1.25% taxation on dividends#

A SAS or SARL holding owning at least 5% of an IS-taxed SCI for at least 2 years benefits from the parent-subsidiary regime (articles 145 and 216 CGI): dividends remitted to the holding are exempt from IS up to 95%, only a 5% lump-sum portion for expenses being reinstated. On EUR 100 of dividend received from the subsidiary SCI, the holding pays EUR 1.25 of IS (5% × 25%). This mechanism makes the holding relevant as soon as an investor operates several SCIs or articulates a wealth SCI with an operating company. Our article on holdings and tax optimisation details eligibility conditions and common pitfalls.

Capitalisation and reinvestment#

A real estate holding makes it possible to capitalise net rents after IS, then to reinvest in further acquisitions without incurring personal income tax and social levies on each distribution. It is the favoured instrument of investors targeting a 5- to 10-property portfolio. Conversely, extracting personal cash remains taxed: final distribution to the individual shareholder bears the 30% flat tax or progressive scale by election.

Coordination with the operating company#

A director who owns their operating company and a professional building through an SCI may consolidate ownership under a common holding. Tax integration (article 223 A CGI) requires 95% ownership and a common fiscal year, and neutralises intra-group flows. This articulation is always arbitraged together with the director's wealth strategy; we refer to our article on family business transmission for the real estate Dutreil dimension.

Article 150 U CGI and main residence exemption#

Article 150 U II 1° CGI fully exempts the capital gain on sale of the main residence, provided the property actually constitutes the main residence at the date of sale or the sale process started within a normal timeframe after departure (12 months in practice). IR-taxed SCIs owning a shareholder's main residence benefit from the exemption for the corresponding share. An IS-taxed SCI, conversely, has no access to this exemption.

Holding-period reduction (22 years IR, 30 years PS)#

Private capital gain (article 150 U CGI) is taxed at a flat 19% income tax rate and 17.2% social levies, totalling 36.2%. The holding-period reduction applies differently to the two bases: for IR, 6% per year from year 6 to year 21 then 4% in year 22, leading to full exemption at 22 years; for social levies, 1.65% per year from year 6 to year 21, 1.60% in year 22, then 9% per year from year 23 to year 30, leading to full exemption at 30 years. A sale between 22 and 30 years therefore leaves only 17.2% social levies on a decreasing portion of the gain.

Surtax above EUR 50,000 of capital gain#

Article 1609 nonies G CGI applies a progressive surtax of 2% to 6% on real estate capital gains above EUR 50,000, by tranches of EUR 50,000. This surtax does not apply to the main residence or to exempt sales. On a Paris property bought 15 years ago with a EUR 350,000 gain, the surtax adds roughly 5% to the overall rate, bringing effective taxation to about 40%.

Le Meur law — tourist rental and energy performance#

Law 2024-1039 recalibrated tourist rental taxation and gave municipalities expanded regulatory powers. Beyond the micro-BIC recalibration, municipalities may now cap the number of rental days for a main residence (90 days maximum in Paris), require a registration number, and impose surface compensation in tight zones. Tourist rentals must reach an energy class D at the latest by 2034 per the statutory calendar, with intermediate steps in 2025 (class G ban) and 2028 (class F ban) for long-term rentals.

Vacant-housing tax (article 232 CGI)#

The vacant-housing tax (TLV, article 232 CGI) applies in more than 3,700 municipalities in 2024-2026 (extension by decree no. 2023-822). Its rate is 17% of the rental value in year 1, then 34% from year 2. It targets housing vacant for at least one year on 1 January in tight zones. Ways out: return the property to long-term rental, sell it, or justify involuntary vacancy (active search for a tenant, major works). The Cabinet Hayot Expertise consultation systematically includes a TLV review for Paris portfolios.

Pinel disappearance and MaPrimeRénov#

The Pinel and Pinel+ scheme definitively ended on 31 December 2024 (article 39 of the 2024 Finance Act). No new commitment is possible in 2026, and only commitments signed before that date keep producing effects until the end of the initial engagement period (6, 9, or 12 years). The Denormandie, Malraux, and Monuments historiques schemes remain in force. MaPrimeRénov 2026 remains the main support lever for landlords' energy renovation, subject to means and performance conditions; its coordination with property loss must be validated at consultation.

Wealth diagnosis and objectives#

The consultation starts with a structured inventory: properties owned, carrying structures (personal name, SCI, holding), gross and net rental income, debt outstanding, tax paid in year N-1. To this diagnosis we add the mapping of objectives: capitalisation or income, sale horizon, wealth ambition, family situation, IFI exposure (article 964 CGI, EUR 1.3 million net taxable real estate wealth threshold).

5-10-20 year modelling, 2-3 scenarios#

On a EUR 400,000 Paris acquisition project, we systematically model 3 to 5 scenarios: direct unfurnished, direct furnished actual-regime LMNP, IR-taxed SCI, IS-taxed SCI, holding plus IS-taxed SCI. Each scenario produces an annual cash flow table over 20 years integrating rent, expenses, loan interest, depreciation, IS or IR, social levies, net cash flow, and residual value net of sale tax. The net wealth gap between the best and worst scenario frequently reaches EUR 100,000 to 200,000 over 20 years.

Action plan, calendar, stakeholders#

The deliverable is accompanied by a chronological action plan: legal steps (entity creation, articles of association, capital), notarial steps (preliminary sale agreement, deed), banking steps (financing tailored to the structure), and tax steps (IS election where relevant, specific filings). The calendar coordinates the notary, lawyer, bank, and manager. We recommend a 4- to 8-week gap between consultation and signature of the preliminary sale agreement.

Simple, in-depth, full audit#

Three formats coexist at Cabinet Hayot Expertise in Paris. Simple consultation (1 to 2 hours, one targeted topic): EUR 250 to 500 excluding VAT, ideal to settle a single question (IS election for an existing SCI, capital gain computation on a sale). In-depth consultation (4 to 8 hours with modelling): EUR 800 to 2,500 excluding VAT, suited to an investment project with arbitration across 2 to 3 structures. Full wealth audit (3 to 5 properties, possible holding, transmission): EUR 2,500 to 8,000 excluding VAT, a multi-session engagement with a detailed deliverable. Public prices are listed on our pricing page.

What the deliverable includes#

The deliverable for an in-depth consultation comprises the synthesis note recalling the objective, the assumptions retained, the comparative cash flow tables, the reasoned recommendation, the execution calendar, and the list of stakeholders to coordinate. The legal sources (CGI articles, BOFiP, case law) are systematically referenced to enable third-party review (notary, tax lawyer, tax auditor).

Coordination with notary, lawyer, manager#

The tax consultation does not replace the notary (deed of sale, neutral wealth advice) or the tax lawyer (litigation, ruling, heavy optimisation). Cabinet Hayot Expertise acts as the fiscal conductor: setting the arbitrations, quantifying the scenarios, directing to the right specialist for the deeds. For recurring investors, we offer an annual flat-fee agreement covering ad hoc consultations, tax watch, and stakeholder coordination.

The decision to arbitrate — acquisition structure by horizon#

On a short horizon (resale at 5 to 10 years), direct ownership with optimisation of property loss often remains the most efficient, as it preserves the holding-period reduction and the main residence exemption where applicable. On a long horizon (more than 15 years) with capitalisation, the IS-taxed SCI or the real estate holding become relevant despite double taxation at exit. Actual-regime LMNP has become more complex since the 2025 Finance Act reform and now requires a dedicated simulation including the exit.

The underestimated risk — actual-regime LMNP without exit anticipation#

The most costly mistake observed in 2026 consists in switching to actual-regime LMNP to cancel taxation during the depreciation phase, without integrating the depreciation recapture into the capital gain on resale since 15 February 2025. On a property bought for EUR 300,000, depreciated by EUR 100,000 over 12 years, sold at EUR 380,000: the taxable gain is now EUR 180,000 (instead of EUR 80,000 previously), an additional tax cost of around EUR 35,000 at the 36.2% combined rate. The LMNP consultation must integrate an exit strategy from the start: long-term retention, transition to LMP with article 151 septies exemption, donation before sale.