Investor Real Estate Accounts

For real estate investors to keep track of their properties rental performance and tax information in one place.

French Real Estate Renovation Incentives

The french governement has set up some incentives for renovation and upgrade of real estate. There are many possible setup described in this 40 page document, we review them here.

The list of incentives is summarized on p16 of the document:

  • MaPrimeRenov: owner of rentals must rent as primary residence for 5y after renovation, max 3 houses with 20k per house every 5y
  • Loc'Avantages: reduction of 15% to 65% of taxable unfurnished gross rental income, for a tax benefit of up to 35% of the cost of work,
  • TVA 5.5% available for energy efficiency work, 10% for foundation/bearing walls/roofs that do not increase house size
  • EcoPret 0%/PTZ: max 7k for windows, 15k for other work, 2 works 25k, 3 works 30k, global energy perf 50k, 10k sewer or septic, length: 15y
  • pret avance reno: redemption of principal of interest at sale of the property or at succession, if it does not occur after 20y a repayment calendar is setup.
  • Exoneration de la TF: needs be voted by city council, 50% or 100% based on 10,000 spent this year, or 15,000 spent last 3 years. Article 1383-0B of the tax code.
  • Denomrmandie: tax reduction of 12% if unfurnished rental, 21% if for 12y. Help includes buying price and renovation price. Need to do at least 25k of work and less than 300k total buying + reno spend.
  • ANAH help: besides their PTZ and MaPrimeRenov, LocAvantage, ANAH also offers help 50% grant within 12k for handicap/accessibility of the house
  • Aides des Collectivites Locales: need to contact local Franc'Renov advisor directly, generally centered on energy efficiency
  • Aides des Fournisseur d'Energie: "prime coup de pouce" 4000 to 5000 for fuel boiler replacement with heatpump

These incentives are far lower than EU subsidies in Greece that we went over here. However, they have the potential to strongly improve the IRR of renovations for some owners.