Having a tax benefit is a way to respond to a tax problem, to a savings, investment, capital creation, retirement or family protection objective for everybody.
There are many “tax loopholes“, but the most attractive is that linked to the real estate sector.
Listening, knowing and understanding the needs of its customers makes it easier to understand the devices offered.
It allows taxpayers domiciled in France who acquire new housing or in the future state of completion to benefit from an income tax reduction of 12%, 18% or 21% of the amount of their investment (capped at € 300,000), on a period of 6, 9 or 12 years. The dwellings concerned are bare dwellings as the main residence for the tenant. The investor is bound by a rental commitment condition depending on the duration chosen.
The LMNP system (non-professional furnished rental company) is a tax benefit intended for people who rent out real estate with specific specifications. The property must include all the
necessary furniture essential for normal occupancy of the dwelling for the tenant. However, there is no hotel maintenance service. Another obligation is that annual revenue must be less than or equal to € 23,000, and less than the income of the household subject to income tax. The tax advantage allows the investor not to be taxable on their rents for a period of about 20 years.
It allows taxpayers domiciled in France who acquire new housing or in the future state of completion to benefit from an income tax reduction of 11% of the amount of their investment (capped at € 300,000), on a period of 9 years. The dwellings concerned are furnished rentals such as senior residences, student residences or nursing homes. It is a device that responds to the problem of additional tax-exempt income while benefiting from a tax reduction.
It allows taxpayers domiciled in France who acquire an old property to benefit from a reduction in income tax from 22% to 30% of the amount of work intended for the restoration of the property ( the amount of the work is capped at € 400,000), over a period of 4 years. The housing units concerned are located either in PSMV (safeguarding and enhancement plan) or in ZPPAUP (area for the protection of urban and landscaped architectural heritage). The investor is subject to a 9-year rental commitment.
The “Historic Monument” law meets a dual objective of conservation and restoration of historic heritage.
This tax system aims to create capital while preserving and enhancing the French architectural heritage. This law makes it possible to deduct from overall income or property income, the property charges linked to the maintenance and renovation (rehabilitation) of a property. This deficit is itself attributable to total income without limit. This device is therefore particularly aimed at taxpayers in a high income. The investor is bound to a rental commitment for a period of 3 years after the end of the work and to a conservation period of the property of 15 years.
This tax system uses a notion of dismemberment. We must separate the usufruct from bare ownership. The joining of the two is called full ownership.
“Buying bare property“ therefore allows the investor to acquire real estate at a lower cost. Indeed, the latter owns the walls but does not enjoy them (the usufruct). Full ownership of the property “rebuilds” between 15 and 20 years.
He can have exclusive enjoyment of it only after having restored full ownership of his property.
The investor has no maintenance charges or tax to pay for the duration of the dismemberment.
Investment in a “land deficit“ falls under ordinary law. Its main advantage is to acquire an old property and to deduct from its income all the expenses linked to the renovation of it. The “land result“ obtained allows an attributable tax deduction up to a limit of € 10,700.
Overall, this system corresponds to investors with high TMI (Marginal Tax Tranche) or with existing property income.