The state has long used tax cores to encourage individuals to invest in stone. Several devices make it possible to take advantage of advantageous taxation in return for the purchase of a property intended for rental. That said, the terms and conditions for benefiting from it change so to speak with each budget law. What does 2020 have in store for you? We take stock.
Pinel is looking for something new
Nothing in particular changes with regard to the Pinel program, which has encouraged rental investment in the new real estate market since the end of 2014. The aim here is to obtain a reduction in income tax corresponding to 12, 18 or 21 % of the purchase price of the house, over a rental period of six or nine years, extendable up to twelve years. The overall acquisition cost is however capped at 300,000 euros, on a maximum basis of 5,500 euros per square meter.
Subject to energy performance criteria, this accommodation must also be rented naked, at a price approximately 20% lower than the local market and means-tested for the tenant, who may also be a member of the family. Furthermore, the property must exclusively be located in a zone of real estate tension (zones A, A bis, B1) since 2018.
Note a small originality, since the finance law for 2020 has planned to experiment a new zoning of Pinel in Brittany until December 31, 2021, which will be the subject of a review (the zoning of the municipalities is available via the simulator implemented by Service-public.fr).
Denormandie relaxed in the old
The Denormandie system was created in early 2019 to revitalize old abandoned city centers. But after a year of application, this criterion was deemed too strict. Exit therefore the concept of center, housing can now be located throughout the territory of eligible municipalities. More than 200 municipalities are affected. All of them have been selected on the basis of their need for habitat rehabilitation or because they have concluded a revitalization operation agreement.
If the objective is to buy an old property to renovate it, the terms of the program remain very similar to Pinel. Once the improvement works are completed (the site must represent 25% of the total cost of the operation), the accommodation must be rented for six, nine or twelve years to modest households respecting a ceiling of resources. In return, the lessor benefits from a tax reduction of 12, 18 or 21% over the same period, up to a maximum investment of 300,000 euros. To find out if a city falls under the scheme, head to the simulator available, again on Service-public.fr.
Pod and Malraux continued
In the family of rental investments that are continuing on their own, we can cite the Cosse deduction and the Malraux tax reduction. The first program is better known as “Affordable Rent”. Renewed until 2022, it aims to purchase and hire for six or nine years of housing, recent or old, approved with the National Housing Agency (Anah). Please note, the 2020 finance law requires compliance with a level of energy performance. Depending on the agreement concluded, the rent level is more or less strictly capped (intermediate, social or very social). In return, the lessor can deduct from his taxes 15 to 70% of the gross income received through this rental, depending on the area and the agreement. The rebate even increases to 85% of property income in the event of rental intermediation.
As for the Malraux system, which was also extended until the end of 2022, it allows a tax reduction of 30% (up to 100,000 euros per year) on the rehabilitation of a building, in order to preserve the real estate. While it initially concerned the purchase and rental (for nine years) of housing located in a protected sector or a remarkable heritage site, it has since been opened to degraded old districts and those subject to an agreement urban renewal.
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