Context: after Pinel, the private landlord status

Following the expiry of the Pinel scheme on 31 December 2024 and two years of legislative uncertainty, France’s 2026 Finance Act introduced a new residential investment vehicle: the statut du bailleur privé, commonly known as the “Jeanbrun Scheme” after Housing Minister Vincent Jeanbrun. Effective 21 February 2026, this mechanism marks a clear methodological break from the Pinel era: rather than offering a direct income tax reduction, the legislator now relies on accounting depreciation applied to rental income.

This shift carries significant implications for wealth planning. Depreciation had historically been available only to operators of furnished rentals under the LMNP status (Loueur en Meubлé Non Professionnel). Its extension to unfurnished rental property opens new optimisation avenues for individual landlords and for those investing through a civil property company (SCI) subject to personal income tax.

The Mechanism: How Jeanbrun Depreciation Works

Depreciable Base and Applicable Rates

The scheme allows landlords to deduct annually a portion of the property acquisition price from taxable rental income. The depreciable base is set at 80% of the net acquisition price (excluding purchase costs), the remaining 20% representing the land value, which cannot be depreciated.

The applicable depreciation rate varies according to the level of rent charged, with the principle that lower rents attract higher tax relief — incentivising landlords to provide more affordable housing.

Eligibility Conditions

Who Can Benefit?

The scheme is open to any individual taxpayer domiciled in France for tax purposes, investing either directly or through an SCI subject to personal income tax (not corporate tax). The investor must operate under the actual income tax regime (régime réel); the micro-foncier flat-rate regime is incompatible. The option must be elected in the annual income tax return and is irrevocable for the property in question.

Which Properties Are Eligible?

Only dwellings located in collective residential buildings qualify, whether new-build or existing. Individual houses are explicitly excluded. For new builds, the property must comply with the RE2020 environmental regulation with a minimum DPE rating of class C at delivery. For existing properties, renovation works representing at least 30% of the acquisition price are required to achieve an energy class of A, B, or C.

Unlike the former Pinel scheme, the Jeanbrun Scheme carries no geographic zoning requirement. A property may be located anywhere in France, including rural areas, provided all other eligibility criteria are met.

Rental Commitments

The investor commits to renting the property unfurnished as the tenant’s primary residence for a minimum of 9 years from the date of the first lease, at capped rents in the chosen category. Tenants must also meet income thresholds. The property may not be rented to a member of the landlord’s tax household, nor to a parent or relative within the second degree of kinship.

The SCI Vehicle: Structured Ownership

The ability to access the scheme through an SCI subject to personal income tax opens interesting avenues for investors wishing to structure their real estate holdings within a company framework. Depreciation is applied at the SCI level and allocated among partners pro rata to their shareholding. Each partner then deducts their share from personal rental income.

This structure may prove particularly relevant in a wealth transfer context (progressive donation of SCI shares combined with the statutory personal allowance between parents and children) or a split-ownership arrangement (démembrement). Note, however, that the tenant cannot be a partner of the SCI, and the company must not have elected for corporate income tax.

The Critical Risk: Tax Treatment on Disposal

The Jeanbrun Scheme offers a clear entry-level tax advantage, but an exit-level impact that must be carefully anticipated. Depreciation deductions claimed during the ownership period are added back to the taxable capital gain on disposal.

In practical terms, the capital gain computed upon disposal will be increased by the total depreciation previously deducted. A property acquired for €350,000 and sold for €400,000 after 9 years under the Jeanbrun Scheme (cumulative depreciation: €72,000) will generate a taxable capital gain of €122,000 (€50,000 gross gain + €72,000 add-back), before duration-based allowances.

The analysis must therefore incorporate the holding horizon into the net return calculation. Over long holding periods (above 22 years for full capital gains tax exemption and 30 years for social charges), progressive allowances significantly reduce this impact. Investors with short or medium-term horizons must carefully weigh the immediate tax saving against the deferred tax cost.

Jeanbrun vs. LMNP: Which Route Suits Your Profile?

The natural question for wealth planning clients is whether this new unfurnished rental regime is preferable to the LMNP furnished rental status, which has historically offered similar fiscal advantages through depreciation.

LMNP retains higher depreciation rates (typically 2%–4% on the property structure, 10%–33% on furniture and fittings), with no statutory cap, and imposes no minimum holding commitment. In return, furnished rentals carry higher operational complexity and a different tax treatment (BIC — industrial and commercial income — vs. rental income).

The Jeanbrun Scheme offers simplicity and lighter property management (standard 3-year unfurnished lease). For investors seeking long-term wealth accumulation with minimal operational friction, it may represent a credible alternative to LMNP in certain configurations. The arbitrage depends on the investor’s profile, the nature of the property, and the intended holding period.