Guides

LMNP capital gains: do pre-2025 depreciation deductions count?

Yes. For a sale completed since 15 February 2025, the purchase price used for the capital gain is reduced by all the depreciation deducted on the property, including that of 2015 or 2020. The ministry confirmed it on 24 March 2026, answering an MP.

A studio bought for €200,000 in June 2014 and sold for €260,000 in June 2026, €48,000 of depreciation deducted, €42,000 of it before 2025
CalculationPurchase price usedCapital gains tax
Rule before 15 February 2025no depreciation deducted from the price€245,000€3,935
Only 2025 and 2026€6,000 deducted: reading rejected by the ministry€239,000€5,509
Rule applied€48,000 deducted€197,000€16,527
Acquisition costs (7.5%) and works (15%) at the flat rate. 12 years of ownership: 42% allowance on income tax and 11.55% on social charges. Same calculation as the LMNP capital gains calculator.

My furnished flat has been let since 2014: does pre-2025 depreciation count?§

The 2025 Finance Act covers sales made from 15 February 2025. It makes no distinction according to the year the letting started.

An MP from the Gironde asked whether earlier depreciation could be spared. The answer published on 24 March 2026 is clear: “all the depreciation deducted” during the letting enters the calculation. What matters is the date of the sale, not the year of the depreciation.

What is deducted from the purchase price?§

Depreciation “allowed as a deduction” under article 39 C, that is, the depreciation that actually reduced your furnished-letting profit. The price concerned is that of the property itself: furniture, bought and depreciated separately, is not part of it.

Two points have no official commentary yet. The text does not mention depreciation carried forward for lack of profit and never deducted. And the BOFiP page on the purchase price still dates from 12 September 2012: the details announced by the ministry are not there yet.

Your own figure

Purchase price, sale price, dates and total depreciation deducted: the calculator gives the tax and the share caused by the add-back. No sign-up.

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Which residences are outside the rule?§

The purchase price is not reduced for a property located in:

  • a residence reserved for students, under-30s in training or over-65s
  • an establishment or serviced residence for elderly or disabled people
  • a long-term care unit

A tourist or business residence is not on the list: the rule applies there.

And the holding period?§

The usual allowances for private sellers then apply, as the ministry’s answer recalls. After 22 years of ownership, no more income tax; after 30 years, no more social charges. The depreciation deducted makes the gain larger before the allowances; it does not change these periods.

General information on French law, up to date as of 15 November 2026. This is not legal advice: for a specific situation, a lawyer, a notary or the ADIL of your département (free consultation) can answer you.

Legal texts and sources (7)

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