ROBIEN LAW (UNFURNISHED property for rent = property revenue)
The Refocused Robien Law came into effect in September 2006 to replace the Robien scheme (which replaced the Besson law).
The Refocused Robien Law came to an end on 31 December 2009, following the adoption of the amendment of the 2008 Finance Act. It was replaced by the Scellier Law.
The advantages of the Refocused Robien Law:
- Significant tax exemption on rental income: amortisation of 50% of the total acquisition amount over nine years (6% a year for seven years and 4% a year for two years).
- Deduction of all expenses: property taxes, management fees, loan interest.
The criteria to be eligible for the Refocused Robien Law were:
- To be the buyer of a new accommodation and rent it out as a main residence.
To rent out the property unfurnished for at least nine years (while respecting the ceiling rents fixed by the Government).
BORLOO LAW (UNFURNISHED property for rent = property revenue)
- Deduction of all expenses: property taxes, management fees, loan interest, etc.
- Flat rate deduction of 30% on gross rental income
- Amortisation of 65% over fifteen years of the total acquisition amount (at a rate of 6% a year for seven years, 4% a year for two years and 2.5% for the remaining six years), deducted from the rents collected.
DEMESSINE LAW (UNFURNISHED property for rent = property revenue)
The Demessine law encouraged investment in Classified Tourist Residences in areas defined through legislation. The application period for this law was extended to 31 December 2012.
Advantages of the Demessine Law:
- Collection of a fixed rent in the form of a commercial lease for a minimum of nine years.
- VAT recovery (19.6% maximum) on the acquisition of the property
- Reduction of income tax (up to €25,000 for a married couple)
- Possible distribution of the tax savings (after the first year) over six years instead of five years.
- Possibility of occupying the property for a few weeks each year.
The eligibility criteria for the Demessine Law were:
- The property had to be rented unfurnished and under the form of a commercial lease for a period of at least nine years.
- Several investors in the same property can profit from this scheme.
SCELLIER LAW LCB (Low Consumption Building) (UNFURNISHED property for rent = property revenue)
The Scellier scheme helped encourage investment in the rental property sector through major tax reductions. The amended Finance Laws of 2008 and 2009 have introduced fairer tax benefits. The tax exemption process has become more egalitarian according to tax brackets.
This law came to an end on 31 December 2013 and was replaced by the Duflot Law.
The advantages of the Scellier Law:
- A tax reduction over nine years at a rate of 13% of the price of the property. The operation was capped at €300,000 of investment and at one single dwelling per year.
- A total tax saving of up to 21% of the cost price of the property over fifteen years.
- The tax saving could be deferred during the six years after the purchase of the property in the event that the tax saving was greater than that tax due in the year "N".
The eligibility criteria for the Scellier Law were:
You buy a new dwelling or one not yet completed which complies with the LCB (Low Consumption Building) regulation by 31/12/2012 at the latest.
You commit to renting out the unfurnished dwelling as a main dwelling for a minimum period of nine years. The rent amount must not exceed a ceiling determined by decree.
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