Tax -registered individuals in France, as defined in the General Tax Code, who invest in Overseas, may benefit under certain conditions from an income tax reduction. This reduction is theoretically spread over 5 years.
Which investments are concerned?
Investments must be made, either in the housing sector, or by subscription, in terms of the capital for certain companies.
Which buildings are eligible?
The buildings which are eligible for this reduction are the new buildings located Overseas. These may have been built on acquired or purchased land, during construction or after completion.
These buildings must be assigned to the main residence of the owner or a tenant. Assignment to the main residence must be effective and continuous for at least a period of 5 years (in the intermediate sector, the rental period is increased to 6 years).
Benefiting from the tax reduction plan on overseas investments is extended in certain cases, in terms of rehabilitation works for old houses.
Which subscription with which company?
It is a subscription in terms of capital with a construction company, whose only purpose is to build new housing overseas, which it then leases as unfurnished for at least 5 years (6 years in the intermediary sector), as the tenant's main residence.
There are other special cases in which these tax reductions, may apply (subscription of shares in S.C.P.I, regional development companies in overseas departments, etc. Conditions relating to these transactions and concerning the applicable tax reductions, are extremely strict.
Therefore, you need to be careful and meet a professional, in order to secure the investment.
For further explanations, do not hesitate calling upon your customary notary, who will be able to guide and advise you in choosing the most interesting system, while taking your personal situation into account.
- I own an apartment that is not my principal residence. I put it on sale in order to acquire my principal residence. Can I benefit from a tax exemption on real estate capital gains knowing that I am not the owner of my main home?
- I buy a property for which the mandate of sale provides that the payment of real estate agency commission is the responsibility of the seller. Why is this commission included in the base for calculating notaire fees?
- I am a tenant of my principal residence and owner of my second home. I want to sell it so I can buy a new home that I will assign to my main home. This residence is worth 300.000 €, but I still have 100.000 € of credit to refund. [...]
- I am a partner of an SCI that was incorporated in 1950 for a period of 50 years. No extension has been made at the end of the term, but SCI is still active today. Is it possible to regularize a posteriori?