There is a common belief that owning property comes with high taxes. However, this is not entirely true. In France, discussions about taxes are a popular topic, especially among the middle class and entrepreneurs. Many people complain about the heavy tax burden, administrative complexities, and bureaucracy, which sometimes lead to relocating to countries with more favorable tax conditions, such as Switzerland, Belgium, or Luxembourg.

However, relocating is not always the only solution. France offers many tools for tax optimization related to real estate. Wealthy property owners often make the most of these opportunities with the help of professional consultants. But thanks to Richys' assistants, these solutions are now accessible to almost everyone.

Loi Pinel

The Pinel Law (Loi Pinel) is one of the most popular tools for reducing taxes through real estate investment. This law was introduced in 2015 to stimulate the construction of new housing and improve access to rental properties for the population. Thanks to its effectiveness, the law has been extended and remains relevant today.

Program Highlights:

• Taxpayers can reduce their taxes by purchasing new housing and renting it out.
• The law encourages construction in densely populated areas where housing shortages exist.

Key Participation Conditions:

1. The purchased property must be located in a high-demand rental zone (so-called zones de tension).
2. The property must be rented out for a period of 6 to 12 years.
3. The rental price must not exceed the limits established by law.
4. Tenants' income must not exceed a certain threshold set by the law.
5. The property must meet environmental and energy efficiency standards (e.g., BBC or RT 2012).
6. The property must be rented unfurnished (location nue).

Tax Benefits:

• 6 years of rental — 12% tax reduction on the property value.
• 9 years of rental — 18% tax reduction.
• 12 years of rental — 21% tax reduction. The maximum investment amount for calculating benefits is €300,000. For example, renting out a property for 6 years can provide up to €36,000 in tax reductions.

Loi Denormandie

The Denormandie Law (Loi Denormandie) focuses on the restoration of old properties in city centers. This tool helps improve the quality of existing housing and stimulates its rental market.

Program Highlights:

• Investors purchase and renovate old properties that are uninhabitable.
• Tax deductions are provided for the costs of purchase and renovation.

Key Participation Conditions:

1. The property must be a secondary one and listed as requiring renovation.
2. Renovation work must account for at least 25% of the total project cost.
3. The property must be rented out within two years of the work's completion.
4. As with the Pinel Law, the rental must be long-term (6–12 years), and tenants must not exceed a certain income threshold.

Tax Benefits: Similar to the Pinel Law — up to 21% of the investment amount.

Loi Malraux

The Malraux Law (Loi Malraux) is designed to preserve cultural and historical heritage. Investors receive tax benefits for restoring properties in protected areas.

Program Highlights:

• Provides deductions for the restoration of historical buildings for subsequent rental.

Key Participation Conditions:

1. The property must be located in a zone of architectural or cultural heritage.
2. The cost of restoration work must not exceed €400,000.
3. Tax benefits apply for a maximum of 4 consecutive years.
4. The building must be fully restored both inside and outside.
5. The property must be rented out for at least 9 years.

Tax Benefits: From 22% to 30% of the investment amount, depending on the location of the property.

Loi Censi-Bouvard

The Censi-Bouvard Law (Loi Censi-Bouvard) is a program for investors in furnished housing located in residences offering services, such as student housing or senior homes.

Program Highlights:

• Allows tax deductions for the purchase of furnished housing.

Key Participation Conditions:

1. The housing must be new or under construction.
2. The property must be rented out for at least 9 years.
3. The property must be in specialized residences offering basic services (cleaning, reception, laundry).

Tax Benefits:

• 11% of the investment amount, up to €33,000.
• The ability to recover VAT when owning the property for over 20 years.

LMNP (Loueur en Meublé Non Professionnel)

The LMNP Regime is intended for non-professional owners of furnished properties. This is the oldest and most accessible tool for tax optimization.

Program Highlights:

• Owners of furnished properties can significantly reduce taxes on rental income.

Key Participation Conditions:

1. Rental income must not exceed €23,000 per year or 50% of total income.
2. The property must be equipped with furniture meeting minimum requirements (table, bed, refrigerator, etc.).
3. Basic accounting and a separate tax return are mandatory.

Advantages: Expenses such as repair, utilities, and depreciation can be deducted from income, reducing the tax burden by up to 80–90%.

Each of these programs requires careful analysis and calculations. Consulting with Mathieu Fiscalis will help you choose the optimal option for your specific situation.