The main changes in the Finance Act 2025
At AlpimmoramaWe support our customers at every stage of their property project. Whether selling a property, buying a primary residence or investing in rental property, we know how essential it is to understand the impact of tax and regulatory changes.
Adopted on 3 February 2025, the finance law 2025 introduces a number of measures to change the tax system and support for property in France. These adjustments affect both investors in furnished rental property and first-time buyers wishing to purchase.
Discover in this article a full deciphering of the main changes and their impact on your property projects.
Furnished lettings: reintegration of depreciation into capital gains on property
With the finance law 2025the calculation of the capital gain taxable on the resale of a property rented out as a non-professional furnished rental (LMNP) subject to the real income tax system for industrial and commercial profits (BIC) is changing. From now on, the depreciation applied during the holding period will be deducted from the initial purchase price to recalculate the taxable capital gain. This automatically leads to a increase in capital gains taxThis will reduce the tax advantage available to investors.
🔹 Example: An owner who has purchased a property 190 000 €with 50,000 depreciation over 10 years, and resells the property 250 000 €. Before the reform, the taxable capital gain was 60 000 €. From now on, it will be increased to 110 000 €This considerably increases the tax due.
📌 What this means for investors
If you own an LMNP property and are thinking of selling it, this new measure may have an impact on your tax situation. It is therefore crucial to review your property strategy and anticipate these changes.
💡 Council: Consult a tax expert to analyse your situation and consider alternatives, such as switching to another form of tenancy or selling your property early.
Zero rate loan (PTZ) extended nationwide
Good news for first-time buyers ! From 1st April 2025the Zero rate loan (PTZ)aimed at low- and middle-income households, will now be accessible to in all communesregardless of zoning.
Another major change is the possibility of using the PTZ to building a new housewhich was previously excluded from the scheme.
📌 What impact will this have?
In a region where new-build property is attracting a large number of buyers, this reform may encourage theaccess to propertyby making it easier to buy a new home or build a detached house.
💡 Council: Check your eligibility and put together your PTZ application with a property broker to maximise your chances of obtaining this finance.
Extension of the Loc'Avantage scheme until 2027
The system Loc'Avantagewhich allows homeowners to benefit from a tax relief by letting their property at a moderate rent, is extended until 31 December 2027.
🔹 Reminder of conditions:
The property must be let as main residence.
The rent must be below market price.
Tenants must comply with income ceilings.
A agreement with Anah is required.
📌 Why is it good for homeowners?
If you wish to investing in rental propertyThis scheme allows you to benefit from a attractive tax relief while securing your rental income.
💡 Council: Carry out a profitability simulation before opting for this scheme to assess the tax benefits in relation to the constraints imposed.
Exemption from gift tax for the purchase of a principal residence
To encourage home ownershipThe 2025 Finance Act provides for a exemption from gift tax of up to €100,000 for the purchase of a principal residence.
🔹 Terms and conditions:
The property must be new or completed less than 5 years ago.
It must be occupied as a main residence for at least 5 years.
This measure applies to until 31 December 2026.
📌 Help with property purchases
If you would like to help your children or grandchildren to become homeownersThis tax exemption represents a great opportunity to pass on a family legacy while benefiting from a tax break. significant tax advantage.
💡 Council: Anticipate your succession and consult a notary to optimise the transfer of your assets.
Increase in transfer duties on immovable property (DMTO)
The transfer duties (DMTO)commonly known as "notary feesIn most French départements, there will be an increase. For a period of three yearsthese rights will increase from 4.5 % to 5 %This will have a direct impact on property acquisition costs.
However, there are a number of reasons for this, first-time buyers are exempt from this increase, which is an advantage for first-time buyers.
Why the increase?
DMTOs are collected by notaries at the time of a property transaction and paid to the départements. They are an essential source of funding for local authorities, particularly for their social policies.
Impact on buyers?
For first-time buyers : No increase in fees, which can encourage home ownership.
For other buyers An increase of 0.5 % on the purchase price of the property, which can represent a significant additional cost.
What about Haute-Savoie?
Increase voted : YES
Rate applied : 5% (maximum authorised)
Effective date : 1st April 2025
Decision taken in public session on : 24 February 2025
💡 Council: Before you buy, ask your notaire about the fees applicable in your département and factor these costs into your property budget.
So what can you do in 2025 to optimise your property plans?
The year 2025 marks a turning point with tax adjustments that will affect both property buyers and investors. Whether you're a first-time buyer looking to take advantage of the new incentives or an owner-investor needing to review your tax position, it's vital to adapt your strategy now.
At Alpimmorama we're here to help you analyse your situation and advise you on the best property opportunities. Every project is unique, and we put our local expertise at your service to optimise your buying, selling or investment decisions.
📢 Do you need personalised support? Contact our agency today to benefit from expert advice and make the best choices in this changing tax environment.
