LOI DENORMANDIE , THE NEW TAX BENEFIT FOR RENOVATIONS !

TAX BENEFITS FOR RENOVATIONS !

LOI DENORMANDIE , THE NEW TAX BENEFIT FOR RENOVATIONS !
LOI DENORMANDIE , THE NEW TAX BENEFIT FOR RENOVATIONS !


Renovations in real estate concern old housing that require rehabilitation work.
Discover the law Denor-mandie

FOCUS ON THE EXISTING TAX PROVISION WITH THE PINEL LAW

In the context of habitat rehabilitation, the Pinel scheme allows investment in old housing that does not comply with the rules of decency, with the aim of renovation.

However, the Pinel law includes rules with many constraints. Indeed, the work to be done implies that the housing to be renovated is closer to new housing. In addition, the renovation must comply with the standards of labeling in force. This is the 2009 HPE Energy Performance High Performance Label, better known as the 2009 renovation label.

In addition, the Pinel scheme imposes a ceiling on rents. The ceiling depends on the geographical location of the housing to be renovated. In fact, zones A bis, A and B1 included in the so-called strained zones of the hexagon can claim the tax provisions of the Pinel law.

THE PROVISIONS OF THE DENORMANDIE ACT

The government introduced the Denormandie Act to add more flexibility to the Pinel Act. For now, the Pinel law is extended until 2021. With the new tax assistance Denormandie, investors can work for the renovation of dilapidated housing located in city centers.

The text has been validated by Parliament. The entry into force is scheduled for January 2019.

SOME DETAILS ON THE CONTENT OF THE DEVICE DENORMANDIE


For the many players in the real estate sector, the Denormandie law is less restrictive. Indeed, the only condition to be respected involves the ceiling of rent. The government plans to undermine the phenomenon of obsolescence found in many buildings downtown, with the aim of making neighborhoods again attractive.

This new fiscal niche will concern real estate purchased from January 1, 2019. This niche will certainly attract much smaller investors, for a cost of nearly 120 million euros in 2019, according to the government. For example, an investor who buys a home for renovation will do remedial work equivalent to 25% of the purchase cost, at least.

Subsequently, the property will be rented over a period of 6 to 12 years. For its part, the owner of the property obtains a tax reduction of 12% of the amount invested if the duration is 6 years.
If the term is 9 years, the tax reduction is 18%. As for the duration of 12 years, it includes a tax reduction of 21%. The operation includes a limit of 300,000 euros per year, for a maximum of 2 transactions.

THE TARGET AREAS OF THE DENORMANDIE DEVICE

While the new tax provision for renovations also concerns offices that can be converted into housing, it also authorizes the implementation of the city center action plan, initiated in March 2018.

It targets 222 average municipalities. We can mention AngoulĂȘme, Saint-Brieuc, Saint-Michel on Barley, Manosque, Bayonne, Evry, Poissy, Libourne. At the same time, Limoges, Avignon, Dax and PĂ©rigueux can be included as dynamic poles.


thanks for the time .

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