Question 15352 — dependency

Summary

Mr. Jérôme End draws the attention of the Minister of the Economy, Finance and Industrial, Energy and Digital Sovereignty to the relevance and terms of the establishment of a tax exemption on rental income from the former main residence of elderly people living in nursing homes. France has around 7,500 accommodation establishments for dependent elderly people (Ehpad), which accommodate 10% of people aged 75, or approximately 700,000 residents. In 2024, the average price of a nursing home in France was: 2,556 euros per month for a person in GIR 5 or 6 (with total or almost total autonomy), 2,808 euros per month for a person in GIR 3-4 (moderately dependent), 3,060 euros per month for a very dependent person (GIR 1-2). However, this price varies enormously depending on the region and type of establishment. To deal with these particularly high costs, people in a situation of dependency are sometimes forced to sell their property to finance their place in nursing homes. Some choose to rent it and use the rental income to provide this financing. To date, taxpayers not liable for the real estate wealth tax (IFI) and whose reference tax income does not exceed the limit mentioned in II of article 1417 of the general tax code benefit from an exemption from income tax on the capital gain realized upon the sale of their former main residence within two years following their entry into a nursing home (CGI, article 150 U, II, 1° ter). On the other hand, no provision is made when their main residence is rented out to finance the costs linked to the nursing home: these dependent elderly people remain taxed on the total rental income received, which constitutes an imbalance compared to those who sell and which considerably increases their tax burden. In its response to a written question on the situation of dependent people living in nursing homes, lessors of rental properties subject to income tax, the Government indicated on June 3, 2025 that it was "not envisaged to grant taxpayers housed in nursing homes a exemption for the income they earn from the rental of their real estate", because "such a measure would unfairly benefit only taxpayers who own their property since taxpayers who were tenants before being accommodated in nursing homes could, by construction, not benefit from it. It would thus benefit the wealthiest taxpayers, possibly multi-owners to the detriment of taxpayers who are not or only slightly taxable. However, it is important to emphasize that the rental income received by dependent people, even combined with a possible retirement pension or other income, is sometimes not enough to pay the entire monthly payments due to the nursing home. In this case, additional financial support is often provided by the family, usually descendants. It would therefore be relevant to allow the Rental income linked to the former main residence of elderly people living in Ephad is exempt from income tax, since even combined with the other income they receive, it does not allow them to cover the entire amount of their monthly payments. To avoid certain excesses, a decree could specify the maximum amount taken into account for these monthly payments, which would be adapted according to the average rate nursing homes in each region. Such provisions would provide financial relief to their loved ones, without exempting multi-owners or particularly wealthy people from income tax. In a context marked by persistent financial difficulties in nursing homes and the entry into force of Law No. 2024-317 of April 8, 2024 laying down measures to build the society of aging well and autonomy, it is essential to revise the taxation applicable to people in a situation of dependency. He asks him what action he intends to give to this proposal.

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