On December the 30th 2016, the Finance Act for 2016 was published in the Official Journal.
While it establishes the resources of the State as well as their apportionment, it also includes several measures concerning the real estate sector . De Cordier Immobilier proposes to go for you through the major changes introduced by this act.
Finance Act 2016 : some measures related to the energy transition are prolonged
A certain number of measures have been prolonged beyond their former valid period.
Loan in favour of ecology at zero per cent rate ( shortened to PTZ)
It was initially to be suspended beyond December 31st 2015 but it has finally been renewed for three years .It allows to receive a tax credit when carrying out work to improve the energy performance of housing.
Who is concerned? The ecological PTZ concerns owners of habitations built before 1990 and inhabited as main residence by the owner himself or by a tenant. It can also concern the co-owners who carry out works in the common parts of a condominium.
What is new in 2016 ?
- The eco PTZ can now be integrated to a global financial plan to buy or renovate a property.
- The eco-PTZ can now benefit all the owners who carry out work allowing to receive a financial aid from the Anah (Agence Nationale de l’Habitat) : we remind here that the Anah finances aids for works aiming at improving the wholesomeness and the safety of housings as well as their thermic renovation.
- The time to carry out the works is now of 3 years instead of 2 years formerly.
- During this 3-years period, it is possible to ask for a second eco PTZ complementary to the first one, on the condition that the first loan obtained is below a definite amount (30000€).
The tax credit for the energy transition
It has been prolonged until December 31st 2016. Its objective is a double one: to help the owners to finance work to improve the energy consumption of their habitation… and support and the most performing technologies in terms of sustainable development. This year, the stress will be made upon the hydraulic energy and the biomass , whereas the wind power will be left aside.
Finance Act 2016 : rental investment devices that evolve
Significant evolutions can be noted regarding real estate:
- Tax deduction Duflot-Pinel : focused on the rehabilitation of housings and the development of new constructions, it was initially restricted by a quota per building. This quota is no longer applied.
- Malraux device : it allows the owners of restored old buildings for rent to benefit from tax deductions; the Finance Act 2016 envisages an extension of the quarters eligible to this measure...
- Exoneration of the local tax: it can be now granted when a building designed to host offices is converted into habitations and can be applied for 5 years.
- Capital gain on the selling of building to create social housing: when a building is sold so as to create social housing, the capital gain resulting from the sale can grant an exoneration on tax income.
Finance Act 2016 : evolution of the zero per cent rate loan
The zero per cent rate loan (PTZ) concerns the owners who acquire a property in a new construction or an old property located in a rural area and which imply heavy rehabilitation works.
In 2016, the device is extended to the entire territory concerning the old properties to be rehabilitated. Moreover, the PTZ can now represent up to 40% of the total amount of the purchase (whereas it was only up to 35% previously).
Until recently, someone benefitting from a zero per cent rate loan was not allowed to rent out its habitation as long as this loan was not entirely paid back. The Finance Act 2016 now allows renting out an habitation on condition that it has been occupied at least 6 years as main residence.
Those were the main measures introduced in real estate through the Finance Act 2016. They mainly aim at making the market more fluid and lively, while enticing the owners to optimise the energy consumption of their habitations.