Buying to Rent
Discover all information and useful advice to finance your rental investment by rental loans and tax benefits
PLS – Social Housing Rental Loan
The social housing rental loan (PLS) has a preferential interest rate and is granted for the construction, purchase, refurbishment of property to be rented as social housing. This loan can be granted to a state approved individual or entity.
PLI – Intermediate Rental Sector Loan
The Intermediate Rental Sector Loan (PLI) is granted at a preferential interest rate to investors in the intermediate rental sector for the construction, purchase, refurbishment of capped rent housing for tenants on modest incomes.
“Pinel” tax incentive
“Pinel” tax incentive is an aid scheme for rental investment.
- If you invest in newly constructed housing (or equivalent, as defined by decree) for rental, 12%, 18% or 21% of your investment is tax deductible. This tax reduction applies to housing for which the tax payer can justify a particular level of energy efficiency.
- From January 1st, 2015, investors have the possibility of renting their property to members of their direct family as long as conditions regarding rent control and the tenant’s resources are respected.
- Pinel tax incentive ix extended until December 31st, 2017.
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The COSSE tax incentive
A specific deduction is available for income obtained from certain property rentals regardless of the date of acquisition of the property.
This new tax incentive, known as the “Cosse” incentive replaced the previous “Besson” and Borloo” incentives as of January 1st 2017 for National Housing Agency (ANAH) agreed property.
A reduction of between 15% to 85% is possible, depending on the geographical area, the level of rent set up and the way the property is managed (management mandate by a social housing agency or sublease rental).
The request for this tax benefit must be made when filing income tax return for the first year applicable. Certain supporting documents must be provided with the tax return, such as the rental agreement and a copy of the tenant’s tax return for the previous year.
Rental intermediation is a system that makes it possible to secure and simplify the relationship between the tenant and the landlord via a third party (operator, certified organization or association). This system may also enable tax deductions of up to 85% of the rental income, to landlords who agree to rent property to households in difficulty.
Landlord: unpaid rent
For landlords. A useful publication from ANIL, the national housing agency, to help you deal with unpaid rent.