Furnished rental reform: new definition of professional landlords and creation of the Censi-Bouvard tax reduction

Article 90 of the 2009 Finance Act redefines professional furnished letting (LMP): three cumulative conditions are required, namely registration of a household member in the trade and companies register as a professional landlord, annual rental receipts above €23,000, and receipts higher than the household's other earned income. Losses from non-professional furnished letting can only be offset against income of the same kind over the following ten years. The article also creates an income tax reduction (Article 199 sexvicies of the General Tax Code) for the purchase of a new or renovated dwelling let furnished, on a non-professional basis, in a residence for elderly or disabled people, a serviced student residence or a classified tourist residence: 5% of the cost price, capped at €25,000 a year, with a nine-year letting commitment to the operator. Depreciation on these dwellings is deductible only up to 85%.