How to optimize your taxes through real estate investment

Real estate investment is a popular way for the French to build wealth and prepare for retirement. In addition to these advantages, real estate can also be an effective way to optimize your tax situation.

In this article, we'll look at how real estate investment can help you reduce your taxes. We'll look at the various real estate tax exemption schemes available, and the conditions you need to meet to benefit from them.

 

The various real estate tax exemption schemes

There are a multitude of real estate tax exemption schemes in France. These schemes enable investors to benefit from a reduction in income tax or IFI (impôt sur la fortune immobilière) in return for a property investment.

Here are the main real estate tax exemption schemes:

• The Pinel law The Pinel law: this scheme enables investors to purchase a new home or a home in a future state of completion (VEFA), which they agree to rent out for 6, 9 or 12 years. In return, they receive an income tax reduction of 12%, 18% or 21% of the investment amount.
• The Denormandie law: this scheme is similar to the Pinel law, but applies to the acquisition of an older home located in an urban revitalization zone (ZRU) or a commune of regional interest (CIR). The tax reduction is 15%, 20% or 25% of the investment amount.
• The Malraux law: this scheme enables investors to purchase and renovate an old property located in a protected or listed area. In return, they benefit from an income tax reduction of 22% or 30% of the cost of the work.
• The Censi-Bouvard law: this scheme enables investors to purchase furnished accommodation in a tourist accommodation establishment (EHT) or serviced residence. In return, they benefit from an income tax reduction of 11% of the investment amount.
• The Monuments Historiques law: this scheme enables investors to acquire a property listed property and restore it. and restore it. In return, they benefit from a tax deduction on the work carried out.

Conditions to be met to benefit from real estate tax exemption

To benefit from a property tax exemption scheme, a number of conditions must be met. These conditions vary depending on the scheme, but may relate to the location of the property, the nature of the property, the amount of the investment, the rental period or the taxpayer's situation.

It's important to find out the eligibility conditions for each scheme before investing.

Tax optimization through real estate investment

To optimize your taxes through real estate investment, it's important to choose the right scheme and meet the eligibility conditions. It's also important to call on a professional to support you in your project.

Here are a few tips for optimizing your taxes through real estate investment:

• Choose the right scheme: there are a multitude of real estate tax exemption schemes, so it's important to choose the one that suits your situation and your objectives.
• Check your eligibility: before you invest, make sure you meet the eligibility criteria for the scheme you have chosen.
• Call in a professional: a professional can help you choose the right scheme, check your eligibility and make your investment.

 

Real estate investment is an effective way of optimizing your taxes. By choosing the right scheme and complying with the eligibility conditions, you can reduce your tax bill while building up your assets.