A new French tax status lets landlords deduct up to 80% of a rental property's price from taxable rental income. Here's how the statut du bailleur privé actually works, and the open question for UK buyers.
- The statut du bailleur privé ("private landlord status"), part of the 2026 Finance Law promulgated 20 February 2026, lets you deduct an annual amortisation of the property's purchase price from your taxable rental income
- Deduction rates are 3.5% to 5.5% a year depending on the rental tier, up to €12,000 a year, capped at 80% of the purchase price over time
- It applies to properties bought new (VEFA) or renovated old properties (works worth at least 30% of the purchase price), notarised between 21 February 2026 and the end of 2028
- It requires a 9-year unfurnished-letting commitment as the tenant's main residence, and is irrevocable once signed
- Open question, not yet confirmed either way: whether non-French-tax-resident owners can use this status at all — this needs professional confirmation before anyone plans around it
Buy-to-let in France has never offered anything close to UK-style mortgage interest relief, which is part of why French rental property has historically been a harder sell to UK investors than the property itself often deserves. A new status introduced in the 2026 Finance Law changes that calculation meaningfully — but it comes with real strings attached, and one genuinely open question for anyone buying from outside France.
What the Statut du Bailleur Privé Actually Does
Ordinarily, French rental income (revenus fonciers) is taxed with only limited deductions — mortgage interest, some running costs, and a flat allowance under the micro-foncier regime if income is low enough. What you can't normally do is deduct the cost of the property itself against your rental income over time.
The statut du bailleur privé changes that. It lets you treat part of the purchase price as an annual amortisation — a bookkeeping deduction against your taxable rental income, not a tax credit or a reduction of tax owed directly, but a reduction of the taxable income itself.
The Numbers
The annual deduction rate depends on which rental tier you commit to:
| Rental tier | Annual amortisation rate |
|---|---|
| Loyer très social (very affordable rent) | 5.5% |
| Loyer social (affordable rent) | 4.5% |
| Loyer intermédiaire (mid-market rent) | 3.5% |
The deduction is capped at €12,000 per year per household tax unit, and at 80% of the purchase price cumulatively over the life of the scheme.
Some coverage of the scheme also references a separate €10,700 cap that applies when offsetting property deficits against other income, such as salary or pensions — a rule that already exists for ordinary rental deficits under the standard Régime Réel. Because this is a newly enacted measure, we'd recommend confirming the precise interaction between the two caps directly with a French tax adviser or against the official BOFiP guidance once it settles, rather than relying on the €12,000 figure alone for a specific tax return.
Who Qualifies
Two routes into the scheme:
New build (VEFA or equivalent). Buying off-plan or newly built property.
Renovated older property. The property must undergo works worth at least 30% of the purchase price — this isn't a light-touch renovation, it's a substantial one.
Either way, the purchase must be notarised between 21 February 2026 and 31 December 2028. Buy outside that window and the status isn't available, regardless of the property itself.
The Commitment You're Signing Up To
This is not a light-touch tax election. To use the status, you must commit to:
- Letting the property unfurnished, as the tenant's main residence — not a holiday let, not furnished accommodation
- A 9-year letting commitment
- The commitment is irrevocable once signed — breaking it means losing the accumulated benefit
This rules the status out immediately for anyone planning a holiday-let or gîte-style investment, which is the model many UK buyers of French property actually use. It's built for long-term residential landlords, not the seasonal-rental model common among UK-owned French property — if a furnished holiday let is more your plan, see our guide to getting your holiday let properly classified instead, which covers the separate allowance rules that actually apply to that model.
The Open Question for UK Buyers
None of the sources checked for this article confirm, one way or the other, whether the statut du bailleur privé is available to landlords who are not French tax residents. This matters because a meaningful share of UK-owned French rental property is owned by people who are UK tax resident, not French tax resident.
This is genuinely unresolved. If you're considering this status as a non-French-resident, get direct confirmation from a French tax adviser or notaire before factoring it into a purchase decision — don't assume eligibility either way based on this article.
Is This Worth It?
For a UK buyer planning to buy, renovate substantially or buy new, and let unfurnished to a long-term tenant as their main residence for close to a decade — this status could meaningfully improve the tax position on rental income that would otherwise be taxed with very little relief. For anyone planning a holiday-let, furnished let, or shorter hold, it simply doesn't apply, and the standard rental income rules remain what they are.
Given the 9-year irrevocable commitment, this is a decision to make alongside a French tax adviser before signing at the notaire, not something to retrofit onto a purchase already in progress. Once you're declaring rental income under any regime, the Taxpert Tax Filing Assistant can help you work through how it fits alongside the rest of your French return. For more on getting income declared correctly and avoiding common pitfalls, see our full Declaring Income: Strategies & Pitfalls guide collection.
Frequently Asked Questions
What is the statut du bailleur privé?
A new French tax status from the 2026 Finance Law that lets landlords deduct an annual amortisation — 3.5% to 5.5% of the purchase price depending on rental tier — from their taxable rental income, up to €12,000 a year and 80% of the purchase price overall.
Can I use this for a holiday let or gîte?
No. It requires letting the property unfurnished as the tenant's main residence for 9 years — it does not apply to furnished or seasonal holiday lets.
Can non-French residents use this status?
This isn't yet confirmed either way. Get direct professional confirmation before relying on it if you are not a French tax resident.
What properties qualify?
New-build (VEFA) purchases, or older properties undergoing renovation works worth at least 30% of the purchase price — notarised between 21 February 2026 and 31 December 2028.
What happens if I break the 9-year commitment?
The commitment is irrevocable once signed. Breaking it means losing the accumulated tax benefit, so this should only be signed if you're confident in the long-term letting plan.
Is this a tax credit or a deduction?
A deduction against taxable rental income (amortisation), not a direct credit or reduction of tax owed. It lowers the income the tax is calculated on, not the tax rate itself.