Which tax exemption laws should you know to invest in real estate?

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Investing in real estate to reduce taxes can seem complex, especially when starting out. Between the brand new Jeanbrun scheme, the Denormandie and Malraux laws, LMNP, or the property deficit, each scheme has its conditions, advantages, and risks.

How to make the right choice without making mistakes and optimize your rental investment? In this article, Winter Immobilier, your real estate agency in Nice, explains each tax exemption law to secure your project, maximize your tax savings, and build a sustainable portfolio on the French Riviera or elsewhere!

Summary Table

Scheme	Description
Jeanbrun Scheme	Depreciate 80% of the price of an unfurnished apartment let at a capped rent, 9-year commitment, acquisitions until 2028.
Denormandie Law	Tax reduction on older properties with works, tenants under income caps, commitment of 6–12 years.
Malraux Law	Restore an old property in a protected area, reduction of 22–30%, technical monitoring required.
Historical Monuments Scheme	Total deduction of works on classified or listed properties, retention of at least 15 years.
LMNP Status	Furnished rental, micro-BIC or actual regime, suitable for studios, flexibility and tax optimization.
Property deficit	Deduct charges and works on unfurnished rentals, cap of €10,700/year, raised to €21,400 for energy renovation work, combinable with other schemes.
Loc’Avantages	Rent at moderate rates to low-income households, tax reduction of 15 to 65%, commitment of 6 years minimum.
Dismemberment / bare ownership	Separate usufruct and bare ownership, the usufructuary bears IFI and property tax, long-term wealth project.

The Jeanbrun scheme: 2026’s new arrival

Created by article 47 of the 2026 finance law, published in the Journal Officiel on 20 February 2026, the Jeanbrun scheme replaces Pinel, which ended on 31 December 2024. This private landlord status relies on a mechanism previously reserved for furnished rentals, depreciation, meaning the yearly deduction of a fraction of the property’s value, regardless of actual spending. The base equals 80% of the purchase price, fees included, with the remaining 20% attributed to the land.

The scheme targets apartments in collective buildings, whether new or undergoing major renovation covering at least 30% of the price, acquired between 21 February 2026 and 31 December 2028. The property must be let unfurnished, as a main residence, to a tenant outside the owner’s family circle, for 9 years at a capped rent. For new builds, the annual depreciation rate ranges from 3.5% for an intermediate rent to 5.5% for a very social rent. For renovated older properties, it ranges from 3% to 4%. Detached houses and dismembered acquisitions are excluded. We devote a full article to the Jeanbrun scheme, with its detailed rates and a worked example. The legal framework is set out in this analysis from Actu-Juridique.

Winter Immobilier’s opinion: this is the only scheme that restores a tax incentive for new builds since Pinel ended. The trade-off is a capped rent over nine years, which bites harder in Nice than elsewhere given the gap between market rents and intermediate caps. Worth studying case by case, calculator in hand.

The Denormandie law: investing in older properties with works

The Denormandie law allows you to benefit from a tax reduction by investing in an older home requiring renovation works, located in certain municipalities.

To be eligible, the amount of the works must represent at least 25% of the total cost of the operation, purchase price and works combined, not the purchase price alone. Three routes qualify, and you only need one: improving the property’s energy performance by at least 20% (30% for a detached house); carrying out at least two types of work among boiler replacement, loft insulation, wall insulation, hot water system replacement, and window insulation; or creating new habitable floor space. The works must be completed by 31 December of the second year following the purchase. Moreover, the property must then be rented for 6, 9, or 12 years to tenants respecting income and rent caps.

This scheme combines tax advantages and the enhancement of older real estate assets, particularly in transitioning neighborhoods.

The tax reduction reaches 12% of the price for a six-year commitment, 18% for nine years, and 21% for twelve years, within a limit of €300,000 invested. It falls under the overall tax loophole cap of €10,000 per year, and remains open to purchases made until 31 December 2027.

One factor decides everything, the municipality. The scheme only applies in towns covered by the Action cœur de ville programme, those that have signed a territorial revitalisation agreement, or those whose need for rehabilitation is officially recognised. In the Alpes-Maritimes, only Grasse and Vallauris make the list. The official Service Public simulator lets you check a municipality in seconds, and should be your first move before going any further.

Winter Immobilier’s opinion: this is the point we often need to remind clients of, Nice is not among the municipalities eligible for Denormandie. On the French Riviera, the scheme plays out in Grasse and Vallauris, where genuine potential exists in older properties needing renovation. For a Nice-based project, the property deficit and the Malraux law take over instead. Always check a municipality’s eligibility before pricing out any works.

The Malraux law: enhancing historical heritage

The Malraux real estate tax exemption law is aimed at investors wishing to restore an older property located in a protected area (PSMV or PVAP).

It allows you to benefit from a tax reduction of 22 to 30% of the amount of the works. It is the works that are capped, at €400,000 over four consecutive years, not the reduction itself. The benefit falls outside the overall tax loophole cap. The renovated housing must be rented out for at least 9 years, and the owner must respect the architectural guidelines in force.

This scheme provides the opportunity to combine rental investment and the enhancement of historical heritage. This is particularly interesting for highly taxed individuals and enthusiasts of heritage restoration.

Winter Immobilier’s opinion: in Nice, the 30% rate requires an approved safeguarding and development plan, and that single word changes everything. Only one has been approved to date, the Vieux-Nice plan, enacted by decree in 1993 and amended in 1997. The city has other protected districts, the Promenade des Anglais, the resort districts to the north and the port area, but none of them appears among the approved plans listed by the Métropole. Have the perimeter and the applicable document confirmed before you cost a single item of work.

The Historical Monuments scheme: an exceptional wealth strategy

The Historical Monuments law allows you to restore and maintain classified or nationally listed properties while benefiting from significant tax advantages.

The level of deduction depends on how the property is used. Let out, or open to the public for a paying entry, it qualifies for a full deduction from overall income, with no cap. Occupied by its owner and closed to the public, it only allows a 50% deduction of charges, the full deduction being reserved for works subsidised at 20% or more, or carried out by the cultural heritage authorities.

Two conditions then apply together. The property must be kept for fifteen years, or face a clawback spread over three years. And when the scheme relies on public access, that access follows a strict calendar, fifty days a year including twenty-five non-working days between April and September, or forty days across July, August, and September.

This real estate tax exemption law is particularly suited to taxpayers with high incomes, wishing to invest in unique properties and participate in heritage preservation, all while significantly reducing their income tax.

Winter Immobilier’s opinion: investing with this scheme is rare but prestigious. It is a powerful tax lever, provided you master the costs and heritage management over the long term.

The LMNP status: the flexibility of furnished rentals

The Non-Professional Furnished Rental (LMNP) status allows you to legally generate rental income while benefiting from tax advantages.

It applies to furnished housing, and requires registration with the one-stop business formalities window within fifteen days of the start of the rental, to obtain a SIRET number. The status only shifts to professional furnished rental when two conditions are met at the same time, rental income above €23,000 a year and higher than the household’s other earned income. If only one condition is met, you remain under LMNP.

Two regimes are available to landlords. The micro-BIC regime applies a flat-rate allowance of 50% to long-term rentals and classified tourist furnished accommodation. For unclassified tourist furnished accommodation, that allowance has dropped to 30% since 1 January 2025, with the income cap lowered to €15,000. The actual regime, meanwhile, allows the deduction of charges and the depreciation of the property and furniture.

This scheme, particularly suited to small areas and studios, brings flexibility and tax optimization over the long term.

Two recent changes weigh on the decision. Social charges applied to furnished rental income have risen from 17.2% to 18.6%, after the CSG was raised from 9.2% to 10.6% under the 2026 social security financing law. And since 15 February 2025, deducted depreciation is added back into the capital gains calculation on resale, which reduces the benefit of the actual regime for anyone planning to sell in the medium term. Properties in student residences, senior serviced residences and medical care facilities are, however, exempt from this add-back.

Winter Immobilier’s opinion: LMNP remains a relevant choice for student studios and furnished rentals in central Nice, provided you think in terms of holding period rather than the annual tax saving alone. Classification of the tourist furnished accommodation changes everything, it takes the allowance from 30% to 50%.

The property deficit: the often underestimated tool

The property deficit is a scheme intended for owners of unfurnished rental properties, allowing them to deduct from their taxable income certain expenses related to the maintenance, repair, and improvement of the housing, as well as loan interest. These, however, follow a separate regime, they never apply against overall income.

The amount deductible from overall income reaches €10,700 per year, raised to €21,400 for energy renovation work that takes the property from an E, F, or G energy rating to an A, B, C, or D rating, on spending paid until 31 December 2027. The surplus, along with the share coming from loan interest, carries forward against rental income over the following 10 years. The exact conditions, supporting documents to keep, and deadlines are listed on the Service Public rental income fact sheet. This mechanism can be combined with other schemes, such as the Denormandie law or the Malraux law, to optimize your taxation. On resale, a different regime takes over, that of the property capital gain, with its own allowances based on how long you have held the property.

It constitutes an effective lever to reduce income tax while enhancing older property requiring works.

Winter Immobilier’s opinion: in Nice, the property deficit is particularly interesting for older buildings in the center and in neighborhoods undergoing renovation. An analysis of the works costs is essential to secure the investment.

Loc’Avantages: affordable renting with a tax advantage

The Loc’Avantages scheme, formerly the Cosse real estate tax exemption law, allows owners of empty housing to benefit from a tax reduction, not a simple deduction, calculated on the gross income of the conventioned property. It ranges from 15 to 35% for direct letting and from 20 to 65% when going through an approved social agency or association, in exchange for moderate rents for low-income tenants.

Eligible properties must be intended for housing, respect an Energy Performance Certificate (DPE) between A and E, and be the subject of an agreement signed with the Anah. It is not an area that is conventioned but the property itself, so the scheme is open across the whole country, only rent and income caps vary by zone. The rental commitment runs for 6 years minimum, raised to 9 years when the agreement comes with an Anah grant for works. The scheme remains open until 31 December 2027.

This mechanism promotes access to affordable housing while offering a substantial tax advantage to prudent investors.

Winter Immobilier’s opinion: in Nice as elsewhere, Loc’Avantages is ideal for owners wishing to rent to modest families. However, actual profitability should be verified based on rent caps and charges.

Dismemberment and bare ownership: investing differently

Property dismemberment allows you to separate the usufruct and bare ownership of a real estate property.

The usufructuary collects the rents and assumes the management, while the bare owner benefits from a reduced purchase price and a tax exemption on the IFI (real estate wealth tax) and local taxes. Bare ownership thus allows you to invest without worrying about rental management, to prepare your estate, and to reduce donation rights.

This real estate tax exemption mechanism is particularly suited to investors wishing to secure their capital, optimize their taxation, and transmit assets without operational constraints. All while maintaining a medium- or long-term investment horizon.

Winter Immobilier’s opinion: bare ownership is ideal for a family heritage project or to reduce the IFI. It requires a long investment horizon and good estate planning.

Investing in real estate in Nice while reducing your taxes is possible thanks to various schemes, from new to old, including furnished rentals or property dismemberment. But how to choose the real estate tax exemption law best suited to your profile and your wealth objectives?

At Winter Immobilier, we support you at every step: analyzing your situation, selecting the most relevant scheme, estimating the yield, and monitoring tax procedures.

Contact us today for personalized and secure advice, 7 days a week, to make your real estate project on the French Riviera a reality!

FAQ, Real estate tax exemption laws

Which law to choose to reduce taxes?

The choice depends on your profile, your project, and your budget. For older properties with works, the Denormandie or Malraux laws are suitable. For furnished rentals, opt for the LMNP. Historical Monuments or bare ownership target wealth investors.

Remember: the support of an expert like the Winter Immobilier agency helps secure your investment and optimize your tax advantages.

Which law is the most profitable?

Profitability depends on the property, the area, and the duration of the commitment. The Malraux law and the Historical Monuments scheme offer strong tax advantages but require significant investment and technical monitoring. LMNP and the Denormandie law bring more flexibility and a more accessible return on investment, especially for small properties or studios.

Who can buy using real estate tax exemption?

Any French taxpayer wishing to invest in real estate can benefit from tax exemption schemes. Some schemes target high incomes (Malraux, Historical Monuments), others are accessible to all (LMNP, property deficit, Loc’Avantages). A wealth analysis determines the law most suited to your tax and financial situation.

How to get tax exemptions in new real estate?

Pinel ended on 31 December 2024 and can no longer be entered into. For new builds, two routes remain: the Jeanbrun scheme, open to purchases made until 31 December 2028, and LMNP in serviced residences. They allow you to benefit from tax reductions in exchange for a rental commitment over 6, 9, or 12 years and by respecting tenant rent and income caps.

How to get tax exemptions in older real estate?

For older real estate, several schemes allow you to reduce your taxes: Denormandie for housing requiring works, Malraux for properties located in a protected area, Historical Monuments for listed properties, or the property deficit for charges and works. The choice depends on your profile, the type of property, and the location.

Where to invest for tax exemption?

The choice of location is crucial. In Nice and on the French Riviera, prioritize neighborhoods with high rental demand and potential for capital appreciation. Schemes like the Denormandie law target older centers, while new builds or LMNP work well in student or tourist areas. Remember to always check the profitability before investing.