Glossary Loan Insurance: Rental tax exemption

The tax exemption is the set of legal provisions giving the possibility to a person to benefit from a reduction on his income tax or solidarity tax on wealth (ISF). It is a determining factor in choosing a person to make a real estate investment.

Rental tax exemption allows the individual to reduce his tax when he makes a rental investment.

More on rental tax exemption

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Investing in rental real estate is particularly profitable. The acquisition of a house or an apartment can also be realized with an investment objective. Before embarking on the investment of a home, it is necessary to make a calculation of the rental profitability. This allows the investor to analyze the benefit of this investment and compare it with other investment solutions. This is essential to ensure a good real estate investment.

Real estate holds certain tax loopholes allowing investment in housing while benefiting from a tax reduction. To know all about rental tax exemption , do not hesitate to inquire about the law Pinel 2014. This law replaces the law Duflot, since September 1, 2014.

Before you start the rental tax exemption by becoming a homeowner, we advise you to make sure that it is not located in a city where rental investment is discouraged. In some sectors, there is indeed a rental offer much too important in relation to demand. And if you invest in one of these cities, you expose yourself strongly to the risk of finding no tenant to occupy your home.

The word of the broker

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In France, there are several provisions allowing tax exemption from income tax. Existing for about 20 years, the tax exemption concerns the financial and real estate sector. Rental tax exemption , when you buy a property to rent, allows you to reduce the amount of your tax. This advantage of the benefit of tax exemption is generally introduced to promote or revive a sector.

There are various tax exemption laws in real estate in 2015. These allow the financing of real estate through taxes and are proposed to fight against the lack of housing in France. Currently, there is nearly 1,200,000 homes missing in the French housing stock.

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