Income tax - Rental investment in the former "Loi Denormandie" (tax reduction)

Types of acquisitions

The tax reduction relates to the following housing units:

• Old housing being improved
• Premises converted into residential use.

The work must represent at least 25% of the total cost of the operation.

Investment Period

The tax reduction relates to transactions made between March 28, 2019 and December 31, 2027.

Location of the accommodation

The dwelling must be located either in one of the municipalities concerned by the Denormandie scheme or in a condominium in serious difficulty.

Housing can benefit from the tax reduction if it is located in one of the following municipalities :

• Municipalities with a high need for habitat rehabilitation
• Communes in labeled areas City center
• Municipalities having passed a Land Revitalization Operation Agreement (LRCA).

To find out if a city falls under this scheme, you can use this simulator:

Check if your city falls under the "Denormandie" scheme

The tax reduction also applies to housing in a condominium in serious difficulty.

The condominium in difficulty must be in one of the following situations:

• Placed under provisional administration
• Included in the scope of a degraded condominium requalification operation (ORCOD), whether local or declared to be of national interest (ORCOD-IN).

Nature of the work to be carried out

You must do one of the following work in the accommodation:

• Work to improve the energy performance of the housing of 20% at least (30% at least for individual accommodation)
• At least 2 types of work among boiler change, attic insulation, wall insulation, hot water production change, window insulation
• Creation of new living space (for example, balcony, terrace or garage).

Find an EGR professional or architect

The work must be completed by 31 December 2^e year after acquisition.

Ceiling

The tax reduction is calculated by taking into account the following:

• Housing acquisition cost capped at €300,000
• Ceiling of €5,500 per m² of living space.

You must also consider the overall cap on tax benefits.

Rate of tax reduction

The rate varies according to the duration of the lease commitment.