LLI: complete guide to intermediate rental housing
Published on June 18, 2026 · LLI & Private Landlord (Jeanbrun)
Intermediate rental housing (LLI) is an investment framework for new-build homes in a high-demand area, designed for households that are "too well off for social housing, too constrained for the open market". In return for a commitment to rent out the property, the investor benefits from a reduced VAT rate and a reduced property tax. Here is the full guide.
In brief
The LLI allows you to invest in a new build in a high-demand area (A bis, A, B1) with VAT at 10 % (instead of 20 %) and a reduction in property tax for 15 to 20 years, in exchange for a long-term rental commitment and capped rents. The purchase is generally made through an SCI.
Who is it for, and why?
The LLI is aimed at asset-building investors who accept a long-term commitment in exchange for a discounted purchase and lighter taxation. Its rental target is broad: a large share of the population falls below the income ceilings, which is a rental security argument in high-demand areas.
How it works: the conditions
- A new / VEFA property in a high-demand area (A bis, A or B1).
- Ownership through a legal entity (an SCI is recommended), in order to benefit from the reduced VAT and the other advantages.
- A rental commitment of at least 15 years, which can extend to 20 years.
- Capped rents and rental as the tenant's main residence.
The commitment of 15 to 20 years is long: the LLI is an asset investment, to be built into a medium- to long-term strategy.
Rent caps by zone
| Zone | Rent cap (€/m²/month, excluding charges) |
|---|---|
| A bis | 19,51 € |
| A | 14,49 € |
| B1 | 11,68 € |
These caps are then indexed to the reference rent index (IRL). They set the maximum rent you may charge.
The tax advantages
- Reduced VAT of 10 % on acquisition (instead of 20 %), subject to conditions.
- Reduction in property tax for 15 to 20 years, depending on the commitment.
- Property deficit that can be offset, up to 10 700 € per year.
- In an SCI subject to corporation tax, the possibility of accounting depreciation on the property.
No return is guaranteed or quantified: the advantages depend on your structure, your tax position and your circumstances.
LLI or LMNP: what's the difference?
The LMNP is the status for furnished letting, with no imposed commitment period, which lightens the taxation of rental income. The LLI is an investment framework in a high-demand area with reduced VAT and reduced property tax, in exchange for a commitment of 15 to 20 years and capped rents. Two different logics, for different objectives.
Conclusion
The LLI is a demanding but structuring scheme: high-demand area, SCI structure, long commitment, capped rents. Well managed, it combines a discounted purchase with lighter taxation. An adviser on the JL HOME will check the zone, the structure and the caps with you before any commitment.
