Rental Property Investment in France: Complete 2026 Guide
France's investissement locatif (rental property investment) market offers compelling opportunities in 2026, particularly for energy-inefficient properties that can be renovated using generous government subsidies. This guide covers strategies, tax regimes, and the renovation angle that makes France unique.
Rental Yields by Strategy
| Strategy | Typical gross yield | Management level |
|---|---|---|
| Long-term unfurnished | 3–5% | Low |
| Furnished rental (LMNP) | 4–7% | Medium |
| Short-term / Airbnb | 6–12% | High |
| Multi-unit building | 6–10% | High |
| Co-living / colocation | 5–9% | Medium |
The 2026 Energy Law: Risk and Opportunity
France's Climate & Resilience Law bans the rental of G-rated properties from January 2028 (F-rated from 2034). For investors, this creates a unique opportunity: buy energy-inefficient properties at a 15–25% discount, renovate with government grants (up to €25,000 MaPrimeRénov' + €50,000 Éco-PTZ at 0%), and achieve both higher rental income and appreciation.
Key Tax Regimes
| Regime | Key benefit | Best for |
|---|---|---|
| Micro-foncier | 30% automatic deduction | Small rental income < €15K/yr |
| Régime réel foncier | Deduct all expenses + deficits | High renovation spend |
| LMNP (furnished) | 50% deduction or full depreciation | Furnished rentals |
| SCI (property company) | Depreciation + estate planning | Family property portfolios |
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