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Duflot Law: All about the Benefits of New Housing with our Lacanau concierge

Duflot law: everything you need to know about the tax exemption for new housing explained by your Lacanau concierge

No investor should overlook the different taxation of rental purchases. Indeed, in addition to the choice of your plan (micro-Bic, real, etc.) you must upstream of your project, find out about the various laws and the aid developed by the State to improve the final profitability of your purchase. . Different systems have been put in place by the State depending on the type of accommodation chosen. You will therefore have to make a comparison between their advantages to buy your first investment. The Duflot law promotes new homes by offering very interesting advantages for owners. Your Lacanau concierge will explain what you need to know about this law, which aims to encourage new rental purchases. 

What is the Duflot Law

Promulgated in 2013, the Duflot law or Duflot device replaces the Scellier device. The government is implementing this new law to promote the purchase of new housing for rental. 

The Duflot law, old regulations for rental

It may surprise you, but the Duflot law was dismissed in 2014 by the Pinel system. But then, why are we still talking about this law? Well, because this law still governs homes purchased between January 1, 2013 and August 31, 2014. Real estate transactions after this date are eligible for the Pinel law.  

The conditions for benefiting from this law

To benefit from the tax advantages of the Duflot law, your home must meet several criteria in addition to the date of purchase or construction. At first, you must acquire a new property or one that has benefited from major renovations. It must comply with an energy performance level in accordance with the RT 2012 (or BBC) standard and must be located in an eligible geographical area. The Duflot zones are divided into zones A, B and C. You can find the mapping of areas covered by the Duflot law using the simulator made available by the French public services site. 

However, to fall within the scope of this state aid, rental conditions must also be met. Indeed, the Duflot law aims to promote access to rental in so-called “tense” areas. Your accommodation must therefore: 

  • Be rented no later than 12 months after the date of purchase or the end of the work undertaken in the property. 
  • Be rented bare, with a minimum rental commitment of 9 years. 
  • Constitute the principal residence of the tenant. 
  • Comply with the rent ceilings set by the regulations (generally 20% of the market price). 

The tenant benefiting from your accommodation cannot be part of your family circle. He must also prove that his income is below the fixed ceilings. 

The advantages of the Duflot device

The tax exemption granted by the Duflot law can prove to be extremely profitable despite the efforts to be made with regard to rent and eligibility conditions. You benefit from a tax reduction equivalent to 18% of the cost price of your home spread over 9 years. That is a tax deduction of 2% per year. However, the government has provided for a ceiling of €10 per tax household and per year. 

This reduction begins in the year of completion of the work or its purchase if no rehabilitation work is planned. If the amount of the reduction is greater than the amount of your taxes, the excess will not be carried over to the following years. This aid will end after 9 years of rental without the possibility of prosecution.

Namely, the Duflot device is also accessible overseas. This concerns the DOM, the COM (overseas communities) as well as New Caledonia. The rent ceiling will be specific to these areas, the energy performance takes into account the local climate and the tax exemption rate reaches 29%.

Your Lacanau concierge will help you with the procedures

Although this only concerns housing with permanent tenants, the Duflot law only covers a period of 9 years. It is therefore in 2023 that the last homes purchased in 2014 will benefit from their last aid. This is why it seemed important to us to present the new options available to you. 

Have you thought about transforming your rental into seasonal accommodation? Your Lacanau concierge will help you convert your rental. Our teams support you in your approach to allow you to enjoy a new chapter in your investment. We advise you to make your rental investment as successful as possible and to enable you to embark on short-term rental. 

Take advantage of the experience and support offered by your Lacanau Concierge to boost your return on investment and enjoy a better return throughout the year. 

The Duflot law, currently replaced by the Pinel law, has allowed many investors to benefit from a more than attractive reduction in their taxes over the past 9 years. Thanks to this device, the State has made it possible to simplify access to housing in tense areas for households with reduced incomes. However, the Duflot law will definitely end in 2023. But then what to do with your accommodation? If you are thinking of short-term rental, your Lacanau concierge will help you with the procedures. Find on our YourHostHelper site the many concierge services belonging to our franchise. These will be able to provide you with the best possible support depending on your location to allow you to make the most of your rental property.