How to defiscalize in real estate to reduce taxes?

HomeTaxationHow to defiscalize in real estate to reduce taxes?

If you have to pay more than 2000 euros in taxes, it is probably better to turn to tax exemption. Several schemes are compatible with real estate and you get a comfortable reduction each time. Of course, you have to respect all the conditions which are often laborious.

Is it still necessary to present the Pinel law ?

For a few years, one of the devices has known an unprecedented success, the Pinel law is therefore widely known by the French. It should be noted that you can enjoy a reduction of 63 000 euros if you choose a rental investment over 12 years with a reduction of 21 %. Two other cases are possible:

  • You have a reduction of 18 % for a 9 year rental.
  • The first tier is for a 6-year investment with a reduction of 12 %.

It remains one of the best solutions allowing you to reduce these expenses while preparing your future. Indeed, the rents reveal themselves as a rather interesting complement of income, but you can also use them to pay back the bank if you took a real estate loan. The rental investment is also a very interesting guarantee for financial institutions that lend money more easily.

What are the advantages of the Censi Bouvard law?

Depending on the configuration of your home and your plans, the Pinel law is not necessarily the most suitable. You can then opt for the Censi Bouvard scheme which has certain strong points.

  • The recovery of VAT is possible on the purchase price, the percentage is often 20 %.
  • The tax reduction is 11 % for 9 years, the percentage is applied on the cost of the operation.
  • The reduction can be carried over 6 years if the amount is greater than the tax.
  • A flat-rate allowance of 50 % is proposed for the taxation of rental income in micro BIC.

Two statutes for your investment

You can be a professional furnished landlord (LMP) or a non-professional furnished landlord (LMNP). You offer apartments or houses with the bare minimum in terms of furniture. The lessor generally obtains some advantages with, in particular, a specific arrangement for the rental income when declaring taxes. If you adopt the LMNP, the generated incomes are little taxed and the profitability is generally appreciable.

A clear difference must be listed compared to a lease described as bare, because the lease dedicated to furnished rentals is a little easier to enforce. It is important to point out that these are only two statutes and not devices. You must therefore couple it with a solution like the Censi Bouvard law. This makes understanding tax exemption a bit laborious, hence the interest in turning to a real estate professional. He will be able to advise you in all your choices and especially the selection of the best device. He will even be able to offer you his experience to build your project by targeting the most suitable houses for these formalities.

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