In 2025, France has implemented significant legislative and regulatory changes in the property sector, directly impacting real estate agents and property owners. These reforms focus on enhancing energy efficiency, adjusting taxation, and increasing transparency in property transactions.
Energy Efficiency and Rental Regulations
As of January 1, 2025, properties with a Diagnostic de Performance Énergétique (DPE) rating of G are prohibited from being rented out, affecting over 500,000 homes. This measure aims to encourage energy renovations and reduce the carbon footprint of housing. Future restrictions will extend to properties rated F in 2028 and E in 2034. Additionally, energy audits are now mandatory for the sale of properties rated E, F, or G, providing detailed assessments and recommendations for energy improvements. For condominiums, collective DPEs are required for buildings with more than 50 units, promoting a collaborative approach to energy efficiency.
Taxation and Financial Incentives
The 2025 budget introduces a temporary tax exemption for property-related gifts up to €100,000 per donor and €300,000 per beneficiary, applicable until December 31, 2026. This incentive supports investments in new constructions or energy renovations. The zero-interest loan (PTZ) program has been expanded, allowing first-time buyers to finance new-build homes across all regions of France, not just in high-demand areas. However, notaire fees (droits de mutation à titre onéreux) have increased from 4.5% to 5% for property purchases, with potential exemptions for first-time buyers. For non-professional landlords renting furnished properties (LMNP), tax advantages have been reduced. Depreciation claimed over the years will now be considered when calculating capital gains tax upon sale, effectively increasing the taxable gain.
Regulations for Tourist Rentals
Starting in 2025, all furnished tourist rentals must have a DPE rating of at least F. This requirement will tighten to E in 2028 and between A and D by 2034. Additionally, local authorities can limit the maximum rental duration of primary residences to 90 days per year, down from 120. Owners are also required to register their rental activity in a national database
Enhanced Transparency in Property Transactions
From January 1, 2025, property listings and sales agreements must include information about the property’s risk of exposure to natural hazards, including forest fires. This information must be sourced from the official government website Géorisques and disclosed to potential buyers or renters. These comprehensive reforms underscore France’s commitment to environmental sustainability and transparency in the real estate market. Real estate professionals must stay informed and adapt to these changes to effectively serve clients and comply with the new regulations.
Sources
Julicher, Christophe-merger.capifrance, Connexiofrance, Tanit-immobilier, World Property Business Club