LMNP capital gains: the depreciation clawback
Since 15 February 2025, depreciation deducted by a French LMNP under réel increases the capital gain on sale. Who is affected, the exclusions, a worked example.
Kivlo · Updated November 9, 2026 · Sources checked November 9, 2026 · 3 min read
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When a non-professional furnished landlord sells the home, the capital gain is taxed as for a private individual: 19% income tax plus social charges, after allowances for the holding period. But for sales made since 15 February 2025, the depreciation deducted under réel reduces the purchase price used in the calculation: the gain increases by the same amount (article 150 VB, III of the French tax code, CGI). Student residences, senior residences and care homes are excluded.
The rules below are those in force on 9 November 2026. They apply to sales in 2026 and 2027 unless the law changes.
This guide is part of our LMNP réel: the complete guide. It does not cover professional furnished landlords (LMP), who fall under the business capital-gains regime. If you are not tax resident in France, the rules specific to non-residents are outside its scope.
What changed
Until 14 February 2025, a non-professional furnished landlord's capital gain was computed on the purchase price, ignoring the depreciation deducted while letting. You could therefore deduct depreciation every year and never see it again when you sold.
Article 84 of the 2025 finance law (law no. 2025-127 of 14 February 2025) added a III to article 150 VB of the CGI: the purchase price is reduced by the depreciation allowed as a deduction under article 39 C. The rule applies to sales made from 15 February 2025, the day after enactment, whatever the purchase date.
Which depreciation is clawed back
- Depreciation deducted under réel, across all years, including those before 2025.
- Not deferred depreciation that could never be deducted for lack of profit: only depreciation "allowed as a deduction" is targeted.
- Nothing under micro-BIC: the flat allowance is not depreciation. Years spent under micro-BIC do not increase the gain.
At the sale, you therefore need the total depreciation actually deducted since letting began: that is what the depreciation schedule and each year's schedule 2033-C are for.
Excluded properties
The clawback does not apply to homes located in (article 150 VB, III of the CGI):
- a student residence (for students, under-30s in training or internships, apprentices, or over-65s);
- an approved or authorised serviced residence for elderly or disabled people, or a care home (Ehpad);
- a long-term care facility.
For these properties, the gain is still computed without clawing back depreciation.
Worked example
A furnished flat bought for €170,000 in June 2017, let under réel, sold for €230,000 in July 2026: nine full years of ownership. Depreciation of the home deducted over those nine years totals €40,000. The example leaves aside the flat-rate uplifts for acquisition costs and works.
| Item | Before the reform | Since 15 February 2025 |
|---|---|---|
| Sale price | €230,000 | €230,000 |
| Purchase price used | €170,000 | €170,000 − €40,000 = €130,000 |
| Gross capital gain | €60,000 | €100,000 |
Holding-period allowances then apply: 6% per year beyond the fifth for income tax (article 150 VC of the CGI), 1.65% for social charges. After nine years, they are 24% and 6.6%.
| Taxable base | Before the reform | Since 15 February 2025 |
|---|---|---|
| Income tax (after 24%) | €45,600 | €76,000 |
| Social charges (after 6.6%) | €56,040 | €93,400 |
Here the income-tax base exceeds €50,000: a surtax on high capital gains is then added. The notary computes and pays the tax at the sale.
What it changes for the choice of regime
The clawback does not remove the point of réel: depreciation reduced tax on the rent every year, at your income tax rate plus social charges, and the gain only claws it back at the 19% rate plus social charges, after allowances. For income tax, the gain is fully exempt after 22 years of ownership, and for social charges after 30 years.
It does weigh in two cases: a quick resale, before the allowances kick in, and a small result where depreciation was of little use. The micro-BIC or réel comparison should therefore take the expected holding period into account: see LMNP micro-BIC or réel.
Have it checked before you sell
The total depreciation deducted, a possible exclusion of your residence and the uplifts for costs and works all change the gain. Before signing, have the calculation checked by your notary or a chartered accountant (expert-comptable).
Sources
- Article 150 VB of the French tax code (purchase price), Légifrance
- Article 150 VC of the French tax code (holding-period allowances), Légifrance
- Article 39 C of the French tax code, Légifrance
- 2033-NOT-SD instructions (2026 edition), impots.gouv.fr
Last checked on 9 November 2026
Your deducted depreciation, one click away
From the Business plan, Kivlo keeps your depreciation schedule year after year: the total to claw back on sale is always up to date.
Frequently asked questions
Since when is LMNP depreciation clawed back in the capital gain?
For sales made from 15 February 2025, whatever the purchase date. The rule comes from article 84 of the 2025 finance law.
Which depreciation is clawed back?
The depreciation actually deducted from your result under réel. Depreciation still carried forward, for lack of enough profit, is not clawed back. Under micro-BIC no depreciation is deducted, so nothing is clawed back.
Which properties escape the clawback?
Homes in a student residence, a serviced residence for elderly or disabled people, a care home (Ehpad) or a long-term care facility.
Do the holding-period allowances still apply?
Yes. The gain is still taxed under the rules for private individuals, with their holding-period allowances: only its starting base increases.
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Kivlo
Kivlo editorial team
Updated November 9, 2026 · Sources checked November 9, 2026 · 3 min read