There are many real estate devices to reduce your tax. So much so that rental investment is one of the most profitable investments today.
For the nine, one of the great devices is the Pinel. Widely acclaimed by investors, it has been renewed until at least 2024. Those who buy a new property can expect a tax reduction of 12, 18 or 21% of the price. An advantage that will be spread over six, nine or twelve years, recalls Capital. There are a number of conditions to be met (tense area, rent and tenant income capped). The investment is limited to 300,000 euros and the purchase price to 5,500 euros/m².
Furnished rentals allow you to benefit from favorable taxation. In the old one, the micro-BIC provides a 50% reduction. In the “real” regime, all charges are deducted (loan interest, work, property tax, depreciation of premises and furniture). In the new, the device called “Censi-Bouvard”, concerns accommodation located in student, senior or tourist residences. Advantage, a tax reduction (up to 33,000 euros), the recovery of VAT and often guaranteed rents.
The property to be renovated can also reduce its tax. It is possible to create a land deficit. Maintenance, repair and improvement works are tax deductible. The amount will be deducted from the rents, “the excess being charged to your overall income within the limit of 10,700 euros, then to your rents for the following ten years for the rest” specify our colleagues.
The Malraux law allows, under certain conditions, to obtain a tax deduction of 22 to 30% depending on the area. The Historic Monuments Act allows the amount of renovation and maintenance work on the property to be charged, as well as the associated loan interest. It is still necessary to find a property falling within this framework.
Buying a property as a bare owner allows you to obtain a discount ranging from 40% to 50% of the value of the property. In addition, the buyer is not subject to certain taxes such as property tax and real estate wealth tax (IFI). He can recover the entire accommodation without any additional costs or taxes to be paid, at the end of the duration of the dismemberment carried out, i.e. fifteen to twenty years.
Finally, you can buy shares in so-called “tax” real estate investment companies (SCPIs), which are invested in acquiring and managing real estate assets. “Rental investment through an SCPI can generate a land deficit and help reduce your income tax” can be read on economie.gouv.fr.
