The laws of finance published later this year contain many provisions for rental investment. Like last year, all tax loopholes are planed again. But this time, the movement of the plane is much more severe as it rises to 15% (10% in 2011). Details of the four main steps.
THE LOI SCELLIER
In 2011, the Loi Scellier allowed the investor agreeing to lease at least 9 years of rent under certain conditions, to pursue a tax reduction of 22%, if his new home was stamped “low consumption building” (BBC). In the absence of standard BBC, the reduction was 13%. For 2012, the tightening is much more serious.
First, the BBC does not provide housing no more tax cuts, unless they have been a building permit on or before December 31, 2011, in which case it is then set to 6 %. Then, the rate of reduction for the BBC estate is reduced to 13% for new housing or heavily renovated – if they get work from the BBC label renovation.
The reduction is capped at a purchase price (or cost) of 300,000 euros per year per unit, spread over nine years. But attention, it now adds a ceiling price per square meter of living space according to the location of housing. A decree will set the ceiling on hold. For the government, it is to refocus the system on the areas most strained.
In Loi Scellier intermediate (with rent ceilings and income tenants), the rate of nine years is 13% in 2012 may have at 4% for three years or hire additional 8% for six years, a reduction increased to 17% year-over-year or 21% over fifteen years.
Note that a transitional arrangement has been put in place that allows investors who acquired a home to keep the rate in effect in 2011 (22% for housing BBC and 13% for non-BBC). “A priori, without application of the new plane of 15% should confirm that a future tax instruction,” said Philippe Van Steenlandt, director of the Research Group Monassier. However, it is the act of booking has been registered before December 31, 2011 and that the notary deed is signed before 1 April 2012.
But the changes do not stop there. Another new feature to be eligible in 2012, housing that is new or heavily restored, must have been a deposit of building permits between January 1 and December 31, 2012. Some programs which the building permit was prior to this period should be disqualified. However, new housing types become eligible Loi Scellier: housing that is the subject of work involved in the production of a new building or renovation work, as well as the premises turned into housing. On one condition: they must have been purchased and have been subject to planning permission between 1 January 2009 and December 31, 2012. “Previously, only the work of transformation and rehabilitation carried out by the taxpayer himself was eligible,” said the Anil. This development should, logically, offer new opportunities to investors.
With all these changes, the success of the device may be blunted. The 2012 vintage is in fact much less attractive and not going in the direction of improved performance, now around 3.5 to 4% in new real estate (excluding tax). Still, the device is in any case, removed in 2013.
THE DEVICE MALRAUX LAW
Since 2009, the Malraux Act gives to the investor who makes restoration a tax cut (and not a deduction) that varies with the area covered by the operation. In 2011, this reduction was 36% of the amount of expenses incurred as a protected area, but fell to 27% in Amvap area (area of development of architecture and heritage) and in protection zones (zone heritage protection architectural, urban and landscape). These reductions, however, are taken within the limit of a maximum amount of 100,000 euros per year of work, corresponding to a tax reduction of up to 36,000 euros or 27,000 euros, all spread over a period of up to three years or less over the years during which the building permit was issued or the opposition period has expired prior to declaration. In 2012, the deduction is reduced to 30% in a protected area and 22% in Amvap or ZPPAUP. The ceiling of € 100,000 jobs a year does not change. This means that the investor can deduct either 30,000 or 22,000 euros per year as appropriate. Substantial tax savings in exchange for a lease of at least nine years (unlimited rent).
THE RESIDENCES OF SERVICES
Until now, individuals who invest in a service residence (students, tourism, seniors and medicalized for the frail elderly) could, opting for the status of renting dwellings unprofessional (Leaseback) benefit from a reduction of tax equal to 18% of net amount of purchase, subject however to a maximum investment of 300,000 euros. This device, called Censi-Bouvard, does not escape the movement of the plane, the reduction from 11% in 2012. However, the same transient Loi Scellier that was in place and allows investors booked and registered their contract before the end of 2011 continue to benefit from the 2011 version with a discount rate remained at 18%, “here even without application of plane by 15%, “says Philippe Van Steenlandt. Provided of course that the final deed is signed at the notary before 1 April.
Good news for investors, however: the device which was to end at 31 December 2012 is maintained until the end of 2014, but only for new homes whose application for a building permit was filed before 1 January 2012 and the units completed for at least fifteen years and has been the subject of rehabilitation or renovation.
Investors who have already purchased or will be until 2014 of course retain their tax benefits during the rental period imposed by the Censi-Bouvard, nine years. Nevertheless, this system retains a strong appeal because, in addition to the tax cut, it allows the reimbursement of VAT at 19.6%.
OVERSEAS INVESTMENT
Two systems coexist overseas: the Girardin and Loi Scellier. For Girardin, the benefit from investment in new housing for rent Free disappears in 2012. The only remaining intermediate version of the device, that is to say with ceiling rents and tenant income requirements. The rate of reduction of tax which was set at 40% in 2011 in exchange for a lease of at least six years, is reduced to 31% in 2012 within a maximum price per square meter space (plus balconies , veranda …) set to 2. 437 euros (maximum 2011, the 2012 is not yet known).
The Loi Scellier overseas also undergoes movement of the plane. In Loi Scellier classic, if the investor rents for nine years by respecting minimum rent ceilings, it benefits in 2012, a tax rate reduction lowered to 24%, within a ceiling of expenditure 300,000 euros, while the nine-year (five years in New Caledonia, French Polynesia, Wallis and Futuna). In Loi Scellier intermediate (rent ceilings and income), the reduction can reach 28% if the investor agrees to lease twelve years and 32% if the lease is extended to fifteen years. The transitional regime applicable to investments made in the metropolis, however, is transposed to overseas investment, to apply a rate of 31%. Nevertheless, this regime disappears in late 2012.
Investing in overseas is therefore a good option and improves the return on investment, again around 4% gross. But beware, all the tax cuts for taxpayers who invest in the islands can not exceed a choice, either a ceiling of 30,600 euros for 2012 (40,000 euros in 2011), 11% of total net income. We must therefore make its accounts.
