CSG Increase and LMNP Changes in 2026: What Every Ski Property Owner Needs to Know

If you own — or are planning to buy — a ski apartment or chalet in the French Alps, the 2026 Finance Act (Loi de Finances) and the Social Security Financing Law (LFSS 2026) have introduced changes that directly affect your bottom line. The headline: social charges on capital gains have risen, the rules for qualifying as a professional furnished landlord (LMP) have been tightened for non-residents, and new registration requirements for short-term rentals are coming into force. None of it is catastrophic — but all of it requires attention.

This guide, prepared by Domosno — specialists in French Alps ski property since 2005 — breaks down each change, explains who is affected, and sets out practical steps to ensure your Alpine investment remains as tax-efficient as possible. As always, we recommend consulting a qualified French tax advisor for advice specific to your circumstances. What follows is a clear, factual overview of the new landscape.

The most talked-about change in LFSS 2026 is the increase in the CSG (Contribution Sociale Généralisée) component of social charges. For non-residents selling French property, the standard social charges rate applied to capital gains has risen from 17.2% to 18.6%, effective 1 January 2026. This is because the CSG rate on income taxed under Article 244 bis A has been raised from 9.2% to 10.6%.

However — and this is important — not everyone pays the full 18.6%. If you are affiliated to the social security system of an EEA state, Switzerland, or the United Kingdom, you pay only the solidarity levy of 7.5% instead. Post-Brexit, British nationals who are tax-resident in the UK and affiliated to the NHS or a UK-based social security scheme continue to benefit from this reduced rate under the terms of the EU–UK Trade and Cooperation Agreement.

In practical terms, a British owner selling a ski chalet in Morzine for a €200,000 taxable capital gain would pay approximately €15,000 in solidarity levy (7.5%) rather than €37,200 at the full 18.6% rate. The distinction is significant and worth confirming with your tax advisor before any sale. Domosno can introduce you to English-speaking specialists who handle this routinely.

France distinguishes between Professional Furnished Landlords (LMP) and Non-Professional Furnished Landlords (LMNP). The classification determines how your rental income is taxed, whether you can offset losses against other income, and how capital gains are treated on sale. Until now, the test was relatively straightforward: if your furnished rental income exceeded €23,000 per year and was greater than your other French professional income, you qualified as LMP.

The Finance Act 2026 has substantially modified this test for non-residents. The tax authorities now compare your furnished letting income against all your worldwide income subject to equivalent tax in your state of residence. For most British owners earning a UK salary or pension alongside their Alpine rental income, this change will frequently result in a reclassification from LMP to LMNP.

Why does this matter? Under LMNP, you cannot deduct rental losses against your other income (only against future rental income), and capital gains on sale are taxed under the private individuals’ regime rather than the professional regime. On the other hand, LMNP capital gains benefit from taper relief — full exemption from income tax after 22 years of ownership and from social charges after 30 years. For long-term holders, LMNP status can actually be more favourable. The key is to understand which status applies to you and plan accordingly.

If you let your ski property on a short-term basis (furnished holiday lets to tourists), 2026 brings two additional changes. First, all short-term rental properties must now be registered with a dedicated national online service by May 2026. This registration is mandatory regardless of whether you manage the property yourself or use a letting agency.

Second, for non-classified short-term furnished rentals (those without a tourism star rating), the notional deduction under the micro-BIC regime drops from 50% to 30%, and the income threshold to qualify for the micro regime decreases from €77,700 to €15,000. This means many owners who previously used the simple micro-BIC declaration will need to switch to the régime réel (actual expenses), which is more complex but can be more advantageous if your deductible costs — mortgage interest, depreciation, management fees, maintenance — are substantial.

For new-build ski properties placed in a classified commercial rental scheme (residence de tourisme), the rules are more generous: the 50% micro-BIC deduction is maintained, and the income threshold remains higher. This is one of several reasons why new-build VEFA purchases with classified rental status remain highly attractive from a tax perspective — alongside the potential for 20% VAT recovery and reduced notary fees of just 2–3%.

Non-resident owners who generate rental income from French property face a minimum tax rate of 20% on the first bracket of net rental income, rising to 30% above approximately €28,797 (the 2026 threshold, adjusted annually). This applies even if your French income alone would normally be taxed at a lower marginal rate.

On top of the income tax, social charges apply. Here, the LFSS 2026 has provided some relief: the CSG increase to 10.6% does not apply to rental income from unfurnished lettings, which remains subject to the overall social contribution rate of 17.2%. For furnished lettings, the position depends on your social security affiliation — UK-affiliated owners continue to pay the reduced 7.5% solidarity levy on both rental income and capital gains.

The interaction of income tax (20–30%) and social charges (7.5% or 17.2–18.6%) means that the effective combined rate on net rental income for a British owner of a furnished ski property is typically 27.5–37.5%, depending on the income bracket and affiliation status. This sounds steep, but generous deductions under the régime réel — including French mortgage interest, depreciation of the property and furnishings, and management expenses — can significantly reduce the taxable base.

When you sell a French property at a profit, the capital gain is subject to income tax at a flat 19% plus social charges (7.5% for UK-affiliated owners, or up to 18.6% for others). An additional surtax of 2–6% applies on gains exceeding €50,000.

The good news is that French capital gains tax includes generous taper relief. After the fifth year of ownership, you receive an annual deduction of 6% on the income tax component, reaching full exemption from income tax after 22 years. For social charges, the taper is slower — 1.65% per year from years 6 to 21, then 1.60% for year 22, then 9% per year from years 23 to 30, reaching full exemption after 30 years.

This makes long-term ownership highly advantageous. A British owner selling a ski apartment in Chamonix after 22 years would pay zero income tax on the gain, and only the reduced 7.5% solidarity levy (itself tapered). After 30 years, the gain is entirely tax-free. For investors with a long horizon — and given that French Alps property has historically appreciated at 4–6% annually in well-located resorts — the hold-and-let strategy makes compelling financial sense.

France’s Impôt sur la Fortune Immobilière (IFI) applies to anyone — resident or non-resident — whose net French real estate assets exceed €1.3 million. Only property assets count (not financial investments, art, or other wealth), and the tax is calculated on a progressive scale starting at 0.5% for the portion between €800,000 and €1.3 million, rising to 1.5% above €10 million.

For most ski property owners, IFI is unlikely to bite: a single property worth less than €1.3 million is below the threshold, and outstanding mortgage debt can be deducted from the property’s value for IFI purposes. However, if you own multiple French properties — say a Megève chalet and a Courchevel apartment — the combined net value could push you over the threshold. In that case, proper structuring and mortgage planning can legally reduce your IFI exposure.

The 2026 Finance Act has not changed IFI rates or thresholds, but it is worth noting that the taxable value is the market value as at 1 January each year. In a rising market — and French Alps ski property values have been rising — your IFI liability can creep up even without a new purchase. Annual review with a tax advisor is prudent.

The regulatory changes are real, but manageable. Here are five practical steps every ski property owner or prospective buyer should take:

1. Confirm your social security affiliation status. This determines whether you pay 7.5% or 18.6% in social charges — a difference of over €22,000 on a €200,000 capital gain. Your UK National Insurance record or European Health Insurance Card (GHIC) may be sufficient evidence. Ask your tax advisor to verify.

2. Review your LMP/LMNP classification. If you have been filing as LMP, the new worldwide income comparison test may change your status. Get a professional assessment to understand the implications for your current and future tax returns.

3. Register your short-term rental property. The national registration deadline is May 2026. Non-compliance may result in fines and could affect your ability to let the property. If you use a management company, confirm they are handling this on your behalf.

4. Consider switching to régime réel. With the micro-BIC deduction dropping to 30% for non-classified properties, the régime réel — which allows deduction of actual expenses including depreciation — may now be more tax-efficient. A qualified accountant can model both options for your specific property.

5. Talk to Domosno about new-build VEFA opportunities. New-build purchases in classified rental schemes retain the 50% micro-BIC deduction, benefit from 20% VAT recovery potential, and come with reduced notary fees. If you are considering a new acquisition, new-build ski apartments and new-build ski chalets offer the most tax-efficient entry point into the French Alps property market.

Tax legislation is complex and changes regularly. Domosno is not a tax advisory firm — but we work alongside a network of English-speaking notaires, accountants, and tax advisors across the French Alps who specialise in non-resident property ownership. We can introduce you to the right professionals for your situation.

Whether you are buying a ski property for the first time, reviewing the tax position on an existing investment, or considering a sale, our role is to ensure you have the expert support you need at every stage. We have been helping international buyers navigate the buying process since 2005, and our team understands the intersection of property, tax, and lifestyle that makes Alpine ownership unique.

Contact Domosno to discuss your requirements. Browse our all ski properties or use our French mortgage calculator to model your financing. And if you have specific tax questions, we will connect you with someone who can give you definitive answers.