Did you know?
Since its launch in September 2014, the Pinel law has transformed the landscape of rental investment in France, but beware, the scheme will come to an end on December 31, 2024
So what are your options?
Real estate investment and tax exemption.
Tax relief through real estate investment enables you to reduce your tax bill by investing in rental property while complying with the conditions of a specific law (set out below). These schemes offer a tax advantage, either in the form of a tax reduction, or by deducting part of the rental income, provided you comply with rent ceilings, tenant income limits or eligible zones set by law.
loi denormandie
It encourages the renovation of older housing in eligible areas, often run-down town centers. By investing in this type of property and complying with the conditions (work representing at least 25% of the total cost of the operation and rent and tenant income ceilings), you can benefit from a tax reduction.
malraux law
It encourages the restoration of properties located in protected areas, such as historic districts. By carrying out renovation work on these properties, you can deduct a significant proportion of the expenses incurred from your taxable income, subject to strict conditions.
historic monuments law
As the owner of a listed or registered property, you can deduct the full cost of restoration work from your taxable income, with no limit on the amount. This scheme is aimed at heritage enthusiasts, but imposes certain obligations, such as opening the property to the public if you receive subsidies.
land deficit law
It allows you to deduct the costs of renovating or maintaining your property from your taxable income, when they exceed the rental income received. This scheme is particularly advantageous if you are heavily taxed, as it directly reduces your tax base, up to the authorized limits.
Any investment or solution involves risk.
Your situation should be analyzed by a wealth management professional to develop a strategy tailored to your situation, your objectives and your investor profile.
