Reducing Income Taxes

In France, taxes are never really welcome and many taxpayers are wondering how to reduce their income taxes. Today, there are several ways to benefit from income tax cuts, including investment in the real estate sector. A look back on the various ways to reduce your taxes.

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Related topic : Real estate investment to tax

Tax relief

  • laws: real estate investment in strength
  • Tax reduction and real estate investment
    • Pinel law: investment in new real estate
  • Tax reduction thanks to real estate

Tax laws: real estate investment in force

In recent years, the Government has put in place a series of laws and measures to encourage real estate investment, also property tax.

See also : Loi Pinel Bordeaux

Malraux law, Robien law, Borloo law, Scellier law, Duflot law, Pinel law, Cosse law… There is no shortage of measures encouraging investment and tax tax: they follow each other, with their peculiarities. What current and valid device to choose when you want to turn to property tax? And how to make the right choice, depending on whether one is interested inreal estate investment in the new or in the old ? Don’t panic, we guide you on tax relief devices accessible to any taxpayer.

Tax reduction and real estate investment

Real estate investment is one of the most appreciated solutions of the French to access a significant reduction in their tax. Investing in stone is a safe value and has always been. Whether in the new or in the old one, your investment can entitle you to interesting tax advantages.

Pinel law: investment in new real estate

The Pinel law is currently the most interesting tax and investment scheme for a French taxpayer paying moderate amounts of income tax. The principle of the Pinel law: this scheme replaces the Duflot law by expanding the possibilities of tax exemption.

The Pinel law has been extended until 31 December 2021 and entitles you to a simple tax advantage:

  • You make a starting real estate investment in the new;
  • You make the accommodation available to a tenant for 6 years, 9 years or 12 years;
  • You can tax up to 12%, 18% or 21% of the amount excluding VAT of your real estate purchase, depending on the rental term chosen;
  • Your tax reduction extends over the duration of the rental.

The conditions to be eligible for Pinel tax tax are varied:

  • Respect Pinel zoning (zone A, A Bis and B1)
  • Respect rent ceilings;
  • Respect the tenant’s income ceiling;
  • The new dwelling must be a low-consumption building;

It should be noted that the Duflot Act previously allowed only a rental of new housing for 9 years. The Pinel law is a powerful tax tax tool today popular among investors for its simplicity, clarity and its logic of encouraging the construction of new real estate in certain areas called in tension, where rental demand is strong.

A real estate investment makes it possible to build a wealth effectively. Even if it is to make an investment for the future , for a child or for a retirement, as well as taking into account the possibilities of tax relief and tax reduction proposed by the Government.

Tax Reduction Through Real Estate

In the real estate sector, there is no shortage of devices to access tax relief and tax reduction.

  • Opt for the Denormandy law if you want to invest in old housing;
  • Choose the Malraux law if you are interested in heritage and historic buildings;
  • Opt for the Censi-Bouvard device if you prefer the management of a furnished: student residence, EHPAD, tourist residence…
  • Opt for the old Cosse if you want to operate affordable rents and help homes;

The Did you know ? Depending on the year, doing energy renovation work on a property also reduces your tax while saving energy.