French banks finance rental property bought by non-residents, counting part of the expected rent, often about 70%, if the projection is credible. A long-term unfurnished let counts more than furnished or holiday income. Since late 2024, communes have more power to restrict furnished tourist lets, and the least energy-efficient homes can no longer be let under a new lease. Check both before you rely on rental income in your plan.
How banks count rent
Rental income from the French property is usually counted only in part, often about 70% of the expected rent, and only if the bank believes it. A signed lease, an agent's rental estimate or a letting history all help. Patchy holiday income counts for little.
The 35% ceiling still applies, and the small margin banks have to exceed it is mostly reserved for main homes. A rental purchase has to stand on your income and the share of rent the bank accepts. Rental property you already own at home is assessed the same way: its loan counts in full and its rent only in part.
Long-term, furnished or holiday lets
- Long-term unfurnished lets (location nue) give the most predictable income, and banks give them the most weight.
- Furnished lets (location meublée) are usually taxed under the LMNP status, for non-professional furnished landlords, which has its own rules on expenses and depreciation.
- Holiday lets are seasonal and harder to forecast. Banks are cautious with them, and local rules may limit them.
Tell the bank from the start which type of letting you plan, since it decides how much of the rent the bank will count.
Local rules on tourist lets
The Le Meur law of 19 November 2024 gives communes more power to restrict furnished tourist lets, and since 20 May 2026 every furnished tourist let in France must be registered through a national online service. Rules vary from one town to the next. Before you count on holiday income, ask the notaire or the town hall what applies to the property.
Energy ratings and letting
Every home offered for rent needs an energy performance certificate (diagnostic de performance énergétique, or DPE). Since 1 January 2025, the least energy-efficient homes, rated G, can no longer be let under a new lease.
The rating appears in the property listing and in the diagnostic reports the seller must provide. Check it before you sign the compromis. If works are needed to let the property, get them quoted and include them in the financing plan, since banks look hard at renovation projects with no costs attached.
Tax on French rental income
Rental income from French property is taxed in France, whatever country you live in, and usually declared at home with credit under the relevant tax treaty. The wealth tax on property (IFI) applies above €1.3 million net. French Tax Online handles French returns for non-resident landlords, including LMNP. Some investors buy through a French property company; the SCI guide covers the financing side.
Tell us about the property and the type of letting in the eligibility check, and we will introduce you to one broker who finances rental purchases.
Questions
Do French banks count rental income for a mortgage?
Usually in part, often about 70% of the expected rent, and only if the projection is credible. A long-term lease counts more than holiday income.
Can I let a property rated G in France?
Since 1 January 2025, the least energy-efficient homes, rated G, can no longer be let under a new lease. Check the DPE before you sign.
Can a town stop me from letting to tourists?
Communes can restrict furnished tourist lets under the Le Meur law of 19 November 2024. Check the local rules before you count on holiday income.