The 2014 Censi-Bouvard Act allows the French taxpayers investing in real estate, in new-build furnished residence, to decrease their taxes. A percentage of the cost of the apartment is recovered but also the VAT rate of the investment amount.
Who can benefit from the Censi-Bouvard Act ?
These measures are kept for the French taxpayers investing in furnished renting between the 1st January 2013 and the 31st December 2016.
What are the fiscal benefits of the Censi-Bouvard Act ?
This system enables to decrease your income tax, limited to a 300 000€ investment in an accommodation, up to 11% of the pre-tax price. The tax reduction spreads on a linear basis over a 9 years period.
Example : 120 000 € investment
- The VAT amount is 20 000 €
- The tax reduction is 11 000 € over 9 years, being 1 222 € per year
- The total of the fiscal benefits (tax reduction + TVA recovery ) equals 31 000 €
What are the eligible accommodations of the Censi-Bouvard Act ?
Ce sont les logements acquis neuf ou en état futur d’achèvement entre le 1er janvier 2013 et le 31 décembre 2016.
They are the new purchased accommodations or in the process of completion between the 1st January 2013 and the 31st December 2016
The investment following the Censi-Bouvard Act only concerns the following furnished residences :
• Tourism residences
• Student residences
• Senior residences with agreed services
• Foster and care residences
The accommodations must be rented with furnitures and with a commercial lease with the residence manager over a minimal period of 9 years.
Censi-Bouvard Act / Scellier Act : which differences ?
- The 2014 Censi-Bouvard Act enables the purchase of several accommodations per year (limited at 300 000 €), unlike the Scellier Act, limiting at only one purchase per fiscal year.
- The furnished accommodations registered to the Censi-Bouvard Act are not subject to ceilings of rent and tenant funds, or particular areas.
What are the terms and conditions ?
- to purchase the property between the 1st January 2013 and the 31st December 2016
- to rent the property out in the 12 following months of the delivery
- the property must be furnished, and have a commercial lease over a minimal period of 9 years
- the maximum amount kept by the fiscal authority for the tax reduction calculation is 300 000 €
- the activity of Non-professional renters of furnished accommodations must not be carried out professionally, and the renting income must not exceed 23 000 € per year.
- the renting income must be taxed in the Industrial and Commercial profits category
New tourism residence concept positioned towards the owner's occupancy, this combined program of apartments and independent chalets is a genuine balcony facing the MontBlanc.