The purpose of tax exemption laws is to encourage investment.
​
Here are the laws allowing tax exemption: Pinel Law, Denormandie Law, LMNP, Censi-Bouvard Law, Girardin Law, Malraux Law and Cosse Law.
​
​ Are you eligible for tax exemption? To find out, click here .
​
THE PINEL LAW
Buy new to rent unfurnished allows you to benefit from an income tax reduction of up to 21% spread over twelve years, provided for by the Pinel system, for apartments rented as the tenant's main residence. It is also possible to rent out this accommodation to ascendants or descendants while benefiting from the advantages of the system.
​
Any taxpayer domiciled in France, who acquires new or future housing before December 31, 2021, can benefit from the Pinel system. The latter gives the right to an income tax reduction of up to € 63,000 over a period of 12 years (i.e. up to € 6,000 per year from the 1st to the 9th year, then up to 3 000 € per year from the 9th to the 12th year The flexibility of the system allows the investor to choose the duration of his commitment with a minimum of 6 years and 2 possibilities of extension of 3 years each (6, 9 or 12 years ).
​
Consult our specialists to learn more about the conditions of application of this device and to obtain a personalized simulation.
​
​
THE DENORMANDY LAW
As part of a rental investment in a certain municipality and a former degraded district, this law allows to obtain reductions of taxes which can go up to 21% of reduction!
The PINEL Law favors investment in new real estate, here, the DENORMANDIE Law has supplemented the PINEL Law by favoring old housing. Indeed, there are more than 3 million abandoned homes and vacant due to dilapidation. Hence the encouragement of renovations in old real estate.
You can benefit from 12%, 18% or even 21% tax reduction depending on the rental period which corresponds respectively to 6, 9 or 12 years of rental after the completion of the work carried out in the property. It takes a minimum of 6 years of rental to benefit from a tax reduction.
The calculation of the reduction takes into account the price of the property at the time of purchase but also the amount of the work carried out.
​
​
THE LMNP LAW or
NON PROFESSIONAL FURNISHED RENTAL
​
Thanks to this law, rental income may not be taxable or there is a reduction in taxes and recovery of VAT possible.
The LMNP applies to both new and old real estate. In both situations, the rental must begin within one month of the acquisition or completion of the property.
​
In new real estate, you can benefit from tax exemption with recoverable VAT and notary fees which will be lower than in old real estate.
As a result, the advantages in the old one are based mainly on the fact that all the costs and rates are known in advance and that the locations of the old properties are often better located than the new ones (town center, close to the big cities ).
​
​
CENSI-BOUVARD LAW
​
The Censi-Bouvard 2021 law is intended for French taxpayers who practice investments furnished rentals between early January 2013 and late December 2021 (no need register with the Trade and Companies Register).
It provides a tax reduction of up to 11% of the peak Excluding tax for accommodation spreading out over 9 years.
​
The Censi-B Ouvard Law takes into account housing acquired new or in a state of completion between the beginning of January 2013 and the end of December 2021.
Validation of furnished residences: classified tourism, with services for students, with services for people elderly or disabled, or even approved reception and care residences.
However, some conditions must be respected.
​
GIRARDIN LAW
​
The purpose of this law is to allow French taxpayers to benefit from tax reductions if in exchange they invest in overseas communities.
​
​
​
MALRAUX LAW
​
The Malraux Law concerns individuals who wish to invest in buildings to be renovated.
It offers tax reductions related to the rehabilitation of real estate ranging from 22% to 30% of the amount of work depending on the location. However, it will not be necessary to exceed more than 400,000 € of work over 4 years.
The tax reduction is not subject to tax loopholes.
​
​
LUG LAW
​
For all landlord owners, the Cosse Law announces that "the more the rent to which the owner will rent his property will be moderate in a city where it is difficult to find accommodation, the greater the tax incentive will be".
The tax reduction will be between 15% and 70% of the rents collected and can even go up to 85% if the owner entrusts the management to a rigged association.