Tax advantages

  If you are buying an old dwelling to rent it (unfurnished) for at least six years to someone using it as their main residence, the Besson law now allows you to deduct the tax on 25% of the total of your gross income from rent, for the first six years of rental. But this is subject to certain conditions. The tenants' resources must not exceed a given amount (F191,350 for a married couple in the Ile de France region, or F148,830 outside Paris, for example), in the case of rental agreements completed from the year 2000. And the rent paid to you must be below one of various ceilings (between F65 and F66 per m2 in Paris, F35 to F36 in towns of more than 100,000 inhabitants, and F30 to F31 elsewhere).

 If you are buying an old dwelling for use as your main residence and have work done to it after 15 September 1999, you are entitled to a tax credit of 15% on the total paid for large installations not qualifying for the lower rate of VAT of 5.5%, such as large sanitary ware or heating equipment and lifts (see also page 6). Valid until 2002, this tax credit is likely to be limited to F20,000 for a single person and F40,000 for a married couple (period of 1999-2002). This multi-year ceiling is likely to be increased by F2,000 for the 1st dependant, F2,500 for the 2nd, and F3,000 for the third and additional dependants. In addition, a tax credit of 5% will be paid for expenditure on maintenance and surface coverings carried out after 15/09/99. In this case, the ceiling is F10,000 for a single person and F20,000 for a married couple (with an increase of F1,000 for the first dependant, F1,500 for the second, and F2,000 for the third and additional dependants).

 For more information, use the Internet.
At www.logement.org you will find all the answers to any questions you may have. This portal site has links to a whole host of sites to do with property, the Ministry of Housing's site and those of the various banks, plus associations offering consumers advice and protection. It's worth checking out!