Everyone who has property, regardless of its value, must pay tax. Taxes vary according to the value of the goods.
The more valuable the property, the higher the taxes. This means that you end up paying a large amount of tax.
Many people ask how one can reduce tax liabilities.
Indeed, there are several ways in which you can reduce your tax liability. This is what we will talk about in the rest of this article.
What are the tips for reducing 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 immediate tax reduction on your income for the year.
- SME financing The aim of the scheme is to gain tax advantages by financing small and medium-sized enterprises. The ceiling for this financing is €20,000 for a single person and €40,000 for a couple.
- FCPI and FIP For example, you can buy shares in FCPI or FIP funds, so that you will have tax reductions depending on the amount you pay in.
- Retirement savings To use private savings to prepare for retirement.
- Donations and grants By making grants to non-profit organisations of general interest, you can benefit from tax reductions.
- Forestry investment Investment in the French forest offers tax advantages. This is subject to conditions that must be met.
- Investment in SOFICAs The aim is to subsidise 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 for tax reductions through tax credits.
- Out-of-home childcare If you have a child who is looked after outside the home by an approved person or establishment, you will have a tax reduction. The child must not be older than 6 years.
- The purchase of a non-polluting vehicle allows for lower taxes.
Who can benefit from the tax reduction?
Anyone who has to pay tax can use the above-mentioned means to achieve tax relief.
The only condition is that you have to fulfil all the requirements to have access to 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.