Property
Déficit foncier (property deficit)
Setting works on an unfurnished let against overall income.
Overview
This ordinary-law regime allows works on an unfurnished let to be deducted from overall income, up to an annual limit.
An owner who lets unfurnished under the actual-expenses regime deducts costs and maintenance, repair and improvement works from the rents. When these exceed the rents, the deficit is set against overall income up to €10,700 a year, excluding loan interest, which is deductible only from property income. The excess is carried forward for ten years against property income. The property must remain let unfurnished for three years after the deduction.
How it works
Purchase and works
Unfurnished let, actual-expenses regime
Deduction
Up to €10,700 against overall income, ten-year carry-forward
Letting
At least three years after the deduction
Key points
Strengths
- Offset directly against overall income
- Can be combined with other schemes
Points to watch
- Commitment to let unfurnished for three years after the offset
- Works to be coordinated and invoiced correctly
- Annual ceiling of €10,700 against overall income
- Actual-expenses regime compulsory (accounts)
Who it is for
Heavily taxed owners who renovate an older rental property or buy one to renovate, and whose existing property income will absorb the carry-forward. The property deficit can be combined with the other unfurnished letting regimes.
Worked illustration
Example based on assumptions
Assumptions: an owner taxed at 41% carries out €30,000 of improvement works, excluding energy renovation, in a flat let unfurnished. The deficit is set against overall income up to €10,700, saving €4,387 in tax the same year. The remaining €19,300 is carried forward for ten years against property income. The flat must remain let unfurnished for three years.
Regulatory information
This sheet is a general information document of a commercial nature. It constitutes neither personalised investment advice, nor a recommendation, nor a solicitation, and it is not a key information document. Any decision requires a prior analysis of your situation by a duly authorised professional. Investments carry a risk of capital loss. Past performance is no guide to future performance. Taxation depends on each person's situation and may change.
Risk of capital loss on resale. Letting risk: vacancy, arrears, damage. Costs, works and local taxes may rise. Acquisition costs are high and resale is slow. Tax regimes depend on conditions being met over time and on the legislation in force.
Complaints and mediation
Any complaint may be sent to ASTERALE, 4 allée Django Reinhardt, 94110 Arcueil, France, or to sebastien.bailly@asterale.fr. Failing a satisfactory reply within two months, you may refer the matter to the competent mediator. For financial investment advice: the AMF Ombudsman (Médiateur de l'AMF), 17 place de la Bourse, 75082 Paris Cedex 02 (www.amf-france.org/fr/le-mediateur). For insurance broking and intermediation, banking and payment services intermediation and property transactions: ANM Conso, 2 rue de Colmar, 94300 Vincennes (www.anm-conso.com, contact@anmconso.com).
Information sheet updated on 6 October 2026. Download the sheet (PDF)
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The first meeting, of about an hour, is used to check whether this scheme has a place in your wealth.