{"id":3450,"date":"2022-02-02T12:27:29","date_gmt":"2022-02-02T11:27:29","guid":{"rendered":"https:\/\/reno.fr\/?p=3450"},"modified":"2024-03-28T15:31:15","modified_gmt":"2024-03-28T14:31:15","slug":"comment-defiscaliser-ses-travaux","status":"publish","type":"post","link":"https:\/\/reno.fr\/en\/comment-defiscaliser-ses-travaux\/","title":{"rendered":"How to exempt your work from tax?"},"content":{"rendered":"
To give your apartment or house a new lease of life, renovations are often necessary. Renovating a property<\/a> requires a significant budget<\/a>, which can be a considerable burden on your finances. However, it's important to know that work done on a property can entitle you to a significant tax reduction. Here are the details of the possibilities for tax reduction through renovations.<\/p>\n\n\n\n Tax reduction is a strategy aimed at reducing taxation through various schemes. It involves investing part of your savings, income, or salary in a field that offers savings on tax rates in return. This practice is regulated by the General Tax Code and, more broadly, by French legislation. It can be seen as an investment that revitalizes sectors under pressure or neglected.<\/p>\n\n\n\n Tax reduction, regardless of its nature, has several advantages. Among them, you can distinguish tax deduction. This mainly involves tax reduction in specific areas, such as real estate. By carrying out specific works, you, as an investor, can pay less tax.<\/p>\n\n\n\n Tax reduction also offers the opportunity to build wealth without requiring a significant down payment. Some schemes allow access to property without directly paying the acquisition price. You will thus have the opportunity to acquire a property that you can rent out. The rents you receive and your tax deductions will be used to repay the mortgage you have taken out. Adopting the right tax reduction strategy allows you to make the most of your investment in the sector.<\/p>\n\n\n\n Environmental issues have encouraged the government to embark on a policy of encouraging home renovations. Facade renovation, thermal insulation improvement, replacement of shutters, and more\u2014there are many varied works to be carried out in an apartment or house. However, not all works can be tax-deductible. Before starting, you need to know the eligibility criteria for tax reduction.<\/p>\n\n\n\n In recent years, there has been a collective awareness of the importance of the environment. The government now encourages French citizens to optimize the energy balance of their homes. This can be achieved through energy renovation works.<\/p>\n\n\n\n This involves works aimed at improving the energy performance of a building. Among them, you can distinguish thermal and acoustic insulation, installation of renewable energy production equipment, installation of double glazing for windows, and more. It is worth noting that this type of work is mainly related to primary residences (houses or apartments).<\/p>\n\n\n\n Landlords who want to make improvements to their rental properties can benefit from a reduction in the tax rate. The works can be deducted from rental income. After deducting the taxes, you can reduce the total cost of your works and enjoy an environment more suited to daily life. These improvements should thus provide benefits to the comfort of tenants, especially for disabled or elderly people. These are renovations that will facilitate their mobility and comfort in the accommodation.<\/p>\n\n\n\n The works can include :<\/p>\n\n\n\n These works are considered improvements as long as they involve modernizing a property or directly related infrastructure. They entitle you to a tax credit of 25% of your expenses, including labor. These works must be carried out in premises used for residential purposes, commercial premises, professional premises, or rural properties. However, you must ensure that these improvements do not entail any structural modifications to the property. Reconstruction or enlargement works will not be tax-deductible.<\/p>\n\n\n\n For prospective landlords looking to acquire a property in an old neighborhood, there is an opportunity for tax relief through the Denormandie law. This scheme allows for renovation and refurbishment of a non-new dwelling with the intention of renting it out. The property in question must be located in a town undergoing rehabilitation (subject to urban renewal projects).<\/p>\n\n\n\n The renovation works must meet several criteria. The works must improve the energy performance of the property by at least 30%. They must be carried out by an RGE-certified company (Recognized Guarantor of the Environment). They must also represent 25% of the total acquisition cost, including notary fees. The assistance granted will be approximately 12%, 18%, or 21% of the transaction amount.<\/p>\n\n\n\n Tax relief for renovation works applies to primary residences and rental properties. For the latter, all repair and maintenance works borne by the landlord are deductible from rental income. This tax advantage can cover :<\/p>\n\n\n\n Applying a fresh coat of paint between two tenancies can thus be considered a genuine maintenance expense for a landlord. This type of work is part of various deductible expenses when filing taxes. This relatively advantageous reduction encourages landlords to carry out proper and regular maintenance of their properties. It also helps to limit uninhabitable rentals across the entire territory.<\/p>\n\n\n\nThe Benefits of Tax Reduction for Renovations<\/strong><\/h2>\n\n\n\n
Tax-Deductible Works<\/strong><\/h2>\n\n\n\n
Energy renovation works on a primary residence<\/strong><\/h3>\n\n\n\n
Improvement works on rental housing<\/strong><\/h3>\n\n\n\n
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Renovation Works on an Old Property<\/strong><\/h3>\n\n\n\n
Expenditure on Repair and Maintenance Works<\/strong><\/h3>\n\n\n\n
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