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Loi Girardin 2023: help with tax exemption explained by your Lyon concierge

All about the Girardin law and its impact on rental investment thanks to your Lyon concierge

Buying or building a home is, for many, a lifelong goal. However, some of us yearn for even greater, even further. Who has never imagined his life far from the metropolis, the time of a few weeks or even a few months for the luckiest. But have you ever considered going to live under the coconut trees? With a view to revitalizing the overseas territories and departments, the government is creating the Girardin scheme. Your Lyon Concierge explains everything about this state aid, very interesting for the most frequent travelers in France. Discover the specificities and advantages of the Girardin 2023 law and make your real estate projects a reality thanks to your concierge service in Lyon.

What is the Girardin law 2023 

The Girardin system is divided into two distinct laws: one concerning real estate, the other written for the industrialist. Your Lyon concierge will only discuss the real estate aspect of the Girardin law here. Created following the recurring housing problem on the French islands, the Girardin system aims to compensate for the lack of rental opportunities in its overseas territories. Indeed, more than 100 dwellings would be missing in all of the DROM-COM (formerly DOM-TOM). 

Attention, this device is only accessible until December 31, 2025 for the overseas communities. Indeed, the end of the device for the DROM has been established for December 2020. This one therefore concerns the islands of Saint- Pierre-et-Miquelon, Wallis and Futuna, Saint-Barthélemy, Saint-Martin and French Polynesia. It would also seem that New Caledonia (although considered a community with special status) is also affected by the tax system. 

Be aware that the law has expanded to cover social projects. Any social housing rented bare within the first 6 months after its delivery date may be eligible for the scheme, provided that the investment is made between May 27, 2009 and December 31, 2017. The tax reduction will then amount to 50% of the cost price of the accommodation (abatement made of taxes and other public subsidies received). 

The conditions to be met in order to be able to reduce the amount of your taxes are: 

  • Buy or build a new home in the geographical areas listed above.
  • Have a building permit issued before December 31, 2012. 
  • Commit to renting your property as your main residence for a minimum of 5 years for the free sector and 6 years for the intermediate sector.
  • Rent your home within the first 6 months following the end of its construction. 

What advantages for rental investors

The Girardin 2023 law is one of the most interesting tax exemption tools offered by the State. To take advantage of this aid, you must acquire a new home in one of the territories listed above. Whether when buying new housing or for the construction of real estate, the Girardin system provides the owner with a tax reduction. 

The tax reduction rate depends on your rental choices: 

  • The free sector (without constraints on the amount of rents and resources of tenants) reduces taxes by 30% with a building permit issued before 2011, and by 22% for housing for which the permit was granted in 2011.
  • The intermediate sector (which must respect a ceiling on rent and resources defined by the State) grants a reduction ranging from 34% (permit issued in 2011) to 38% (permit before 2011). Housing whose building permit dates from 2012 can benefit from a reduction of 26%. 

Initially scheduled to be stopped in 2017, the Girardin law no longer covers housing completed after December 31, 2011 for the free sector. For the intermediate sector, the system supports housing completed before December 31, 2012. 

Be aware, however, that a property purchased in 2023 in these geographical areas can benefit from the Girardin system provided that the building permit has been issued before the end of 2021. 

Another advantage of the Girardin law in 2023: investments can benefit from a more attractive cap on tax loopholes. In the overseas islands, this amounts to €18. 

The opinion of your Lyon concierge

YourHostHelper thinks big and supports you for all your projects, whatever their size. This is why we are happy to support you in your efforts to invest in overseas communities. A rental investment in these regions is undoubtedly a successful investment thanks to the strong rental demand. In addition, after the mandatory 6 years, you ensure a comfortable base on a very attractive island. 

Finally, after this period, you can take advantage of the tourist attractiveness of the COM to rent your property thanks to the Airbnb platforms. Your Lyon concierge can assist you in your rental project to choose the best option for you according to your objectives. YourHostHelper takes care of your rental management to reduce your mental load and allow you to focus on your new projects. 

Your Lyon concierge offers you an all-inclusive service to carry out your seasonal rentals without asking you the slightest effort. Entrust your property to an Airbnb rental professional to guarantee you optimal rental income from your home. 

The Girardin 2023 law is a tax exemption aid scheme which aims to revitalize the overseas territories and departments. This applies to the purchase or construction of new rental housing as well as to social projects. With a tax reduction of up to 50%, the Girardin scheme is one of the most attractive tax aids put in place by the French State. However, several criteria must be met to be granted this real estate assistance. Your concierge service in Lyon supports you for all your rental projects and takes care of all of your Airbnb rental management to allow you to focus on your new real estate projects.