Everyone who has property, regardless of its value, must pay taxes. Taxes vary according to the value of the goods.
The more valuable the property, the higher the taxes. You end up paying a large amount of taxes.
Many people ask how can we reduce tax liability.
Indeed, there are several ways to reduce your tax liability. That's what we'll talk about in the rest of this article.
What are the tips to follow to reduce taxes?
We often resort to rental investment to take advantage of tax benefits, yet there are several other solutions to reduce taxes, here are 10 :
- Tax SCPIs It is a location that allows you to take advantage of the tax benefits of new real estate, and the tax reduction immediately on your income for the year.
- SME financing To take advantage of tax benefits by financing small and medium-sized businesses. The ceiling for this financing is 20 000€ for a single person and 40 000€ for a couple.
- FCPI and FIP You can buy shares of FCPI or FIP so you will have tax reductions depending on the payment.
- Retirement savings : using private savings to prepare for retirement.
- Donations and grants By making grants to non-profit, public interest organizations, you can take advantage of tax breaks.
- Forestry investment Investing in the French forest allows you to benefit from a tax advantage. This is subject to conditions that must be met.
- Investment in SOFICAs The aim is to subsidize companies approved for audiovisual works (SOFICAs) in order to benefit from a tax reduction of 30% of the sums invested up to a limit of €18,000.
- Employment and home services Tax credits: allow you to reduce your taxes through tax credits.
- Outdoor childcare If you have a child who is looked after outside by an approved person or establishment, you will have a tax reduction. The child must not be older than 6 years.
- Buying a non-polluting vehicle allows you to lower your taxes.
Who can benefit from the tax reduction?
Anyone who has taxes to pay can go through the above mentioned means to achieve tax relief.
The only requirement is that you meet all the requirements to access the tax reduction and tax benefits.
If the necessary conditions are not met, you cannot benefit from the reduction. There are other ways to reduce taxes, we have only mentioned the most accessible ones.