Capital Video: Airbnb rental, PTZ, Pinel… what the deputies are cooking up for you – good and bad – for 2025
© NICOLAS SANDANASSAMY
– The deputies begin the examination, in the hemicycle, of the draft Budget 2025, Monday October 21 at 9:30 p.m.
Real estate owners and those aspiring to become one thought last week that they had a first idea of what awaits them in terms of taxation next year, thanks to the amendments to the revenue side of the finance bill (PLF) 2025 by the Finance Committee of the National Assembly. A first part of the PLF that the commission rejected, Saturday October 19. Which does not change anything in the course of the text since it is always the initial version of the draft Budget, and not the one modified by the Finance Committee, which is examined in public session, that is to say by the entire National Assembly, starting this Monday evening. An initial version which is the subject of nearly 3,500 amendments in preparation for its debate in the hemicycle. Capital details those relating to real estate.
Airbnb rentals : in the spirit of bill from deputies Annaïg Le Meur and Inaki Echanizwhich will be examined by the joint committee on October 28 to find a compromise between deputies and senators, several amendments aim to reduce the tax advantage for rentals of furnished tourist accommodation compared to long-term bare rentals. An amendment thus increases from 30% to 50% the tax reduction on rental income from which so-called bare renters benefit, to align it with that of Airbnb renters. Another amendment goes less far, raising it to 40%. A third aligns tax reductions “from below”, by lowering that of Airbnb rentals from 50% to 30%.
Non-professional furnished rental (LMNP) : the draft Budget 2025 includes, in the calculation of the capital gain on the sale of an LMNP property, accounting depreciation, that is to say the annual loss in value of the housing. This results in a higher added value and, therefore, a higher tax to pay on it. A measure that affects Airbnb rentals and long-term rentals equally. MEPs therefore wish to delete this provision altogether. Others propose taking student residences and senior residences out of its scope.
Zero interest loan : since April 1, 2024, the PTZ only finances new apartments in tense areas, where the demand for housing is much higher than the supply. Several amendments propose to extend the PTZ to the purchase of individual houses and to the entire French territory. Another amendment provides that the PTZ will no longer benefit only first-time buyers but also second-time buyers who wish to buy larger accommodation after the birth of a child. A third even proposes to establish, for two years, a PTZ for all, without conditions of resources or location. A fourth suggests updating the real estate purchase ceilings that the PTZ can finance. These have not changed for 10 years while property prices have increased.
Real estate loan: still to help first-time buyers, while credit rates remain above 3%, some deputies propose that the interest on loans taken out for the acquisition of their main residence – in new or old buildings – be deductible of their overall income. This tax advantage will take the form of a reimbursement of part of the loan interest, in the form of an income tax credit. Provided, however, that the accommodation acquired is rated between A and C on the energy performance diagnosis.
Real estate credit: the zero-rate loan will be extended throughout the country in 2025
Pinel: this tax advantage, granted in return for the rental of new housing at a rent below the market price, will disappear on December 31, 2024. In the absence of another incentive system for rental investment, several deputies suggest extending Pinel by one year, or even three years. Less greedy, other deputies ask that the deadline for signing the authentic deed of purchase of housing in Pinel be postponed from December 31, 2024 to March 31, 2025.
Status of the private lessor : an amendment aims to create a real status of owner lessor, as real estate professionals have been demanding for years, by applying a flat rate of only 12.8% tax on income from the rental of new housing for main residential use. In return, the rent will be regulated and the accommodation must be rated at least D on the DPE.
Intermediate rental housing : if the Pinel were not to be extended and in the absence of the creation of a private landlord status, several amendments propose to extend to individual investors the intermediate rental housing (LLI) regime from which institutional investors benefit. Individuals purchasing an LLI off plan, whose rents are between those of HLM and those of private housing, and committing to renting it bare over long periods, would thus pay VAT of 10%, instead of 20%. They would also benefit from a property tax exemption for the first 20 years following completion.
Capital gains from property transfer : in order to fight against real estate speculation, deputies propose to impose a minimum holding period of one year of the main residence to benefit from the tax exemption of the capital gain on sale. For second homes or rented properties, other deputies recommend removing the reductions for the duration of ownership on the capital gain on sale, replacing them with an allowance corresponding to the updating of the acquisition value of the property in function of inflation. The objective: to accelerate housing resales. Another amendment recommends reversing the tax regime: the sooner you resell your property, the greater the reduction on your capital gain on sale.
Rental investment: big fire sale among real estate developers before the end of Pinel
Exemption from transfer duties: An amendment establishes an exemption from free transfer duties, normally due upon the first transmission, by the purchaser to his heirs, of new buildings or buildings in a future state of completion acquired by authentic deed signed between January 1, 2025 and December 31, 2025. This temporary system aims to quickly relaunch the marketing of new housing, in the midst of the real estate crisis. In return, the property must be used as a main residence for at least 12 years. The exemption is capped at 300,000 euros per share received by each donee (the one who receives).
Transfer rights for consideration: an amendment allows departmental councils to raise the ceiling on transfer taxes for valuable consideration (misusedly called notary fees) from 4.5% to 5.5% of the purchase price, for a provisional period of three years. This is to counterbalance the loss of departmental revenue linked to the real estate crisis.
Real estate wealth tax : still to revitalize new construction, but also renovation, certain deputies wish to remove from the real estate wealth tax (IFI) base properties whose construction or renovation will begin between January 1, 2025 and June 30 2026. Furthermore, deploring that owners who have inherited their main residence are liable for the IFI solely due to the increase in real estate prices while their income is modest, other deputies propose to completely subtract the residence taxpayer’s main part of the IFI’s base. Still others suggest, to increase the number of rentals, removing housing rented under means conditions and with moderate rents from the IFI base from 2025.
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Fight against substandard housing: an amendment from the LFI-NFP group aims to introduce a tax on real estate sales of an amount exceeding one million euros, in order to generate new revenue to strengthen the fight against unsanitary housing.
Rent freeze: an amendment provides for freezing the variation of the rent reference index for two years.
Loc’Advantages: several amendments aim to extend Loc’avant by three years. This incentive to rent a property, used as a main residence, at a rent lower than the market rent, must end in 2024.
Property tax: LFI-NFP deputies want the establishment of an annual review of cadastral rental values. These, which are used to calculate property tax, have not been revised since the 1970s.
Housing tax: an amendment extends the possibility of increasing the housing tax on second homes to all municipalities where there is “a marked imbalance between supply and demand for housing, leading to serious difficulties in accessing housing, in particular with high rents and purchase prices. And no longer just to municipalities located in tense zones A, Abis and B1.
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