The Denormandie scheme is a tax incentive designed to encourage the renovation of old housing in specific areas, in return for a rental commitment.

The property must be old and located in an eligible municipality, with renovations amounting to at least 25% of the total cost, and a rental commitment of 6, 9, or 12 years.

The scheme offers a tax reduction of 12%, 18%, or 21% depending on the rental commitment period (6, 9, or 12 years).

It is recommended to choose dynamic municipalities, optimize the renovations to increase the property value, and set a rent aligned with the local market.

For a property worth €120,000 with €40,000 in renovations, the investor can get a €28,800 tax reduction over 9 years and a gross rental yield of 5%.

The scheme is governed by Article 199 novovicies of the French General Tax Code, specifying the eligibility conditions and the calculation methods for the tax reduction.

The Pinel scheme, succeeding the Duflot one, supports the construction of new housing in exchange for a 6, 9, or 12-year rental commitment, with tax reductions of up to 21%.

The property must be new, located in an eligible zone (A, A bis, B1), meet RT 2012 or BBC 2005 energy standards, be rented unfurnished as a primary residence for 6, 9, or 12 years, and comply with rent and income caps.

The scheme offers a tax reduction of 12% for 6 years, 18% for 9 years, and 21% for 12 years of rental, calculated on the purchase price of the property.

Choose a location in a high-demand area, adjust the rental duration to your tax and wealth goals, and calculate rental yield within the scheme's limits.

For an apartment in Lyon worth €250,000, a 9-year commitment allows a €45,000 tax reduction, or €5,000 per year, plus a gross rental yield of 3.36% with a monthly rent of €700.

The scheme is governed by the French General Tax Code under Articles 199 novovicies for Pinel and 199 nonvicies for Duflot, outlining the conditions and procedures for the tax reduction.

The Scellier scheme, in effect from 2009 to 2013, aimed to support the construction of new housing with a tax reduction for investors who committed to renting their property for at least 9 years.

The Scellier scheme offered a tax reduction calculated on the purchase price of the new or off-plan property, reaching up to 25% of the purchase price for investments made between 2009 and 2010.

The Scellier scheme boosted the construction of over 300,000 homes between 2009 and 2012, but also drew criticism for developments in areas with low rental demand.

An investor who purchased a property worth €200,000 in 2010 benefited from a €50,000 tax reduction over 9 years, or about €5,555 per year.

The Scellier scheme was governed by the French General Tax Code, particularly articles 199 septvicies and following.

Introduced in 2003, the Borloo neuf scheme aimed to encourage investment in new real estate by offering tax benefits in exchange for rent caps and a minimum 9-year rental commitment.

The new Borloo scheme offered a 30% tax deduction on gross rental income, a tax reduction spread over 9 years, and a capital gains exemption after 15 years of ownership.

The property had to be new or off-plan, located in an eligible zone, rented at a capped rent to tenants meeting income limits, with a minimum 9-year rental commitment.

To succeed, it was essential to choose a location with high rental demand, optimize financing with a mortgage, and strictly comply with legal rent and income ceilings.

An investor who bought a property for €250,000 in 2006 could benefit from a 30% deduction on rental income, a tax reduction, and a capital gains exemption after 15 years.

The new Borloo scheme was governed by the French General Tax Code, particularly articles 31 and 199 septvicies.

The Borloo ancien scheme, introduced in 2003, encourages investment in affordable old rental housing by offering tax deductions to landlords who rent to modest-income households.

The property must be old, located in an eligible area, rented at a capped rent to tenants meeting income criteria, for at least 6 or 9 years, extendable to 12.

The scheme offers a 30% deduction on gross rental income, up to 45% in rural revitalization zones, and up to 70% tax reduction on renovation work under certain conditions.

Choose high-demand rental areas, optimize renovation work to maximize tax reductions, and strictly comply with reporting obligations to the ANAH and tax authorities.

An investor buying an old property for €150,000 in zone B1, investing €30,000 in renovation and renting it at €600/month, may benefit from a 30% deduction on rental income and a tax reduction on renovation costs.

The scheme is governed by the French General Tax Code, particularly articles 31 and 199 novovicies, detailing eligibility conditions, rent and income caps, and deduction/reduction methods.

Several tax schemes exist: Pinel for new/renovated housing, Denormandie for old properties with work, Malraux for historic sector renovations, Censi-Bouvard for service residences, and Monuments Historiques for listed buildings.

It is advisable to carefully choose the location, optimize financing through leverage, ensure effective rental management, carry out renovation work to increase rental value and reduce taxation, and take local taxation into account to calculate profitability.

For example, a €200,000 investment in a new Pinel-eligible apartment allows for a €42,000 tax reduction over 12 years. Financed by a loan, the loan interest is deductible from rental income, thus optimizing taxation.

Tax schemes are governed by the French General Tax Code, notably articles 199 novovicies for the Pinel law, 199 terdecies for the Censi-Bouvard scheme, and 156 bis for Historic Monuments. Conditions vary by scheme.

The IFI applies to real estate assets held directly or indirectly, including main and secondary residences, rental investments, shares in real estate companies (SCI, SCPI) not subject to corporate tax, as well as property rights such as usufruct or bare ownership.

The IFI is calculated based on the net taxable value of real estate assets as of January 1st, after deducting debts related to their acquisition or improvement. The amount is then subject to a progressive scale from 0.50% to 1.50% depending on the total value.

The IFI provides a 30% allowance on the value of the main residence. Professional property and forestry group shares may be exempt under certain conditions, as well as some woodland.

The IFI must be declared using form 2042-IFI at the same time as the annual income tax return. It must include the value of real estate assets, deductible debts, and any applicable allowances or exemptions.

Optimization strategies include gifting with usufruct reservation, assigning assets to a professional activity for exemption, or using loans to reduce the taxable base.

The IFI is governed by Articles 964 to 983 of the French General Tax Code, which define the calculation methods, exemptions, and reporting obligations.

The condominium manager oversees the administration, finances, and maintenance of the building. They organize general meetings, collect fees, supervise work, and ensure upkeep of shared areas.

Co-owners must pay condominium fees, comply with the condominium rules, and attend general meetings to vote on important decisions regarding the building's management.

The council assists the manager, oversees their management, checks the accounts, and acts as a mediator in disputes between co-owners or with the manager.

Condominium management is governed by the law of July 10, 1965, and the decree of March 17, 1967. These require a condominium regulation, annual general meetings, and transparent accounting by the manager.

For example, for facade renovation work, the syndic prepares a quote and submits it to the general assembly. Once approved, they supervise the work while the co-owners finance the project according to their shares, and the council monitors the process.

The management of condominiums is governed by the law of July 10, 1965 and the decree of March 17, 1967, which define the rights and duties of co-owners, the responsibilities of the syndic, and the rules for managing common areas.

It is calculated by subtracting the acquisition price (increased by eligible expenses and improvements) from the selling price. Holding period allowances can then reduce the taxable amount.

The sale of a primary residence is fully exempt. Other exemptions apply to low-value properties (under €15,000), sales by elderly persons under certain income conditions, or a first sale of a non-primary residence if the proceeds are reinvested.

For income tax, the allowance is 6% per year from the 6th to the 21st year, then 4% in the 22nd year, resulting in full exemption after 22 years. For social contributions, full exemption applies after 30 years.

The rules are established by the General Tax Code, especially articles 150 U to 150 VH, which specify calculation methods, holding period allowances, and possible exemptions.

For example, a property bought for €200,000 and sold for €350,000 after 15 years generates a gross capital gain of €150,000. After applying holding period allowances, the taxable gain is reduced and may be fully exempt depending on the case.

There are two taxation regimes for rental income: the actual regime, which allows deduction of all actual expenses, and the micro-foncier regime, which applies a flat 30% allowance if rental income is below €15,000 per year.

Real estate capital gain is taxed at 19% for income tax and 17.2% for social contributions, for a total of 36.2%. Exemptions apply, particularly for the sale of a main residence or after long-term ownership.

The IFI applies to individuals whose net real estate assets exceed €1.3 million. It is calculated based on the market value of the assets, after deducting eligible real estate debts.

Real estate taxation is mainly governed by the French General Tax Code, which defines the rules for rental income, capital gains, and the Real Estate Wealth Tax (IFI).

There are two taxation regimes for rental income: the actual regime, which allows deduction of all actual expenses, and the micro-foncier regime, which applies a flat 30% allowance if rental income is below €15,000 per year.

Real estate capital gain is taxed at 19% for income tax and 17.2% for social contributions, for a total of 36.2%. Exemptions apply, particularly for the sale of a main residence or after long-term ownership.

The IFI applies to individuals whose net real estate assets exceed €1.3 million. It is calculated based on the market value of the assets, after deducting eligible real estate debts.

Real estate taxation is mainly governed by the French General Tax Code, which defines the rules for rental income, capital gains, and the Real Estate Wealth Tax (IFI).

Restoration and maintenance work is fully deductible from total income with no ceiling. In addition, capital gains are tax-exempt after 15 years of ownership, and inheritance tax exemptions may apply if the monument is opened to the public.

You must commit to keeping the property, carry out the necessary restoration work, and in some cases, open the monument to the public. You are also required to declare deductible expenses precisely and keep supporting documents.

The scheme applies to buildings or sites listed or registered as historic monuments in France, recognized for their historical, artistic or architectural value.

Investment is governed by the Heritage Code (articles L621-1 and following) and the General Tax Code (articles 156 and 199), which outline the owners’ obligations and applicable tax benefits.

Beyond tax relief, investing in a historic monument helps preserve cultural heritage, provides significant tax deductions, and facilitates inheritance through estate tax exemptions.

Usufruct and bare ownership involve dividing full ownership of a property into two rights: usufruct (the right to use and receive income from the property) and bare ownership (the right to dispose of the property without immediate enjoyment).

It allows for tax optimization during a donation, preserves the estate while ensuring income for the usufructuary, and secures income for the donor until the usufruct ends.

It involves legal complexity, loss of control for the bare owner who cannot enjoy the property immediately, and initial costs for setting up the structure.

It is governed by Articles 578 to 624 of the French Civil Code and by provisions of the General Tax Code concerning the taxation of donations and usufruct income.

A 65-year-old parent can transfer the bare ownership of a property to their child while keeping the usufruct to continue receiving rental income. Upon the usufructuary's death, the child obtains full ownership without additional costs.

A Société Civile Immobilière (SCI) is a non-commercial company that allows several people to collectively own and manage real estate through shares distributed according to each partner's contribution.

The SCI facilitates property management and inheritance, limits partners' liability to their contributions, allows for tax optimization by choosing the appropriate regime (IR or IS), and offers centralized management of real estate.

A SCI involves complex administrative procedures, incorporation costs (notary, registration, legal notice), and joint liability of partners for the company's debts.

SCIs are governed by Articles 1832 to 1870-1 of the French Civil Code for their creation and operation, and by the General Tax Code for the choice of tax regime (IR or IS).

A family sets up a SCI to manage several rental apartments. The rents are collected by the SCI, expenses are shared, and the shares allow for a gradual transfer of assets to heirs.