France’s retroactive 1.4% CSG increase on 2025 income raises tax costs for furnished rental landlords, squeezing rental yields
Executive summary: A 1.4% increase in the CSG contribution was made retroactive to the 2025 income of furnished rental landlords, with applicability depending on the landlord’s tax status. The higher tax burden reduces net rental income, potentially influencing landlord behaviour on rents, investment, and housing supply.
Who is involved: French policymakers, furnished rental landlords, tax advisors, and the jurist Baptiste Bochart from JD2M (who explained the rule).
Likely next: Landlords will adjust their 2025 tax filings; market participants will watch for changes in rental prices and vacancy rates as the new tax takes effect.
The French government has decided to apply a 1.4% rise in the CSG social security contribution to landlords’ 2025 income, with the effect varying by each landlord’s tax status. This move adds to the fiscal pressure on owners of furnished rental properties at a time when the housing market is already tight. Landlords may respond by adjusting rents, seeking tax deductions, or reconsidering new investments, which could affect both supply and affordability in the rental sector.
What's next — scenarios
Base: landlords absorb the cost (50%)
Rental yields dip modestly; landlords keep rents stable and rely on existing deductions to offset the CSG rise.
- No significant change in quarterly rental price index
- Tax return data shows stable CSG revenue from landlords
- Vacancy rates remain unchanged
Upside: cost passed to tenants (30%)
Landlords raise rents to cover the extra CSG, putting upward pressure on rental prices and household budgets.
- Rental price index rises >2% quarter-over-quarter
- Increase in new rental contracts with higher rents
- Tenant complaints about affordability rise
Downside: landlords exit the market (20%)
Some landlords sell furnished properties or convert them to long-term rentals, reducing supply and tightening the market further.
- Decline in new furnished rental listings
- Increase in property sales transactions in the rental segment
- Vacancy rate falls below historical lows
Timeline
- — Qui sont les loueurs en meublé concernés par la hausse de la CSG ? (Le Monde — Économie)
Analysis — what this means
Sectors affected
- Furnished rental property sector
- Residential real estate market
- Tax advisory and accounting services
Regulatory implications
- Retroactive application of a 1.4% CSG increase to 2025 income for furnished rental landlords
- Availability of a flat-rate 1230 euro deduction for Werbungskosten (work‑related expenses) in the 2025 tax return
Historical parallels
- Le Figaro, 2026-09-17: debate on a proposed Zucman tax and a reduction of the CSG alongside a Smic increase to 1700 euros
- Le Figaro, 2026-09-03: CFDT proposals to influence the budget and presidential campaign via CSG, successions and the pacte Dutreil
- Le Figaro, 2026-08-31: presidential candidates discussing a “zero contribution” CSG to bring gross and net wages closer together
Key entities
Sources
- Qui sont les loueurs en meublé concernés par la hausse de la CSG ? — Le Monde — Économie