Loc’Avantages: Rent Affordably and Benefit from Tax Reductions
The French Ministry of Economy and Finance announced the launch of the “Loc’Avantages” program on January 20, 2025. This program aims to provide affordable rental housing for eligible tenants while offering tax benefits to landlords participating in the scheme.
Eligibility Criteria
To qualify for Loc’Avantages, tenants must meet the following criteria:
- Be a first-time renter or have not rented for the past two years
- Have an annual income below the established income limits for their household size and geographical area
- Rent a property that meets the energy efficiency standards outlined in the program
Landlord Obligations
Landlords who wish to participate in Loc’Avantages are required to:
- Offer a rent below the market rate, as determined by official local authorities
- Comply with energy efficiency regulations
- Sign a 6-year lease with the tenant
Tax Benefits
Landlords who participate in Loc’Avantages are eligible for the following tax benefits:
- Income tax reduction: A reduction of 15% on the rental income received from the Loc’Avantages property
- Corporate tax exemption: Companies that own Loc’Avantages properties can claim an exemption from corporate income tax on the rental income for 9 years
How to Apply
To apply for Loc’Avantages, tenants can contact their local housing authority or consult the government website. Landlords can apply through the dedicated online platform on the Ministry of Economy and Finance website.
Impact on the Rental Market
The Loc’Avantages program is expected to increase the supply of affordable rental housing in France. It aims to address the challenges of rising housing costs and the difficulty first-time renters face in securing suitable accommodation.
The program is also intended to encourage landlords to invest in energy-efficient properties, contributing to France’s environmental goals.
Conclusion
The Loc’Avantages program provides a valuable opportunity for eligible tenants to access affordable rental housing while offering tax incentives to landlords who participate in the scheme. This program demonstrates the government’s commitment to supporting both tenants and the rental market.
Loc’Avantages : louez abordable et bénéficiez d’une réduction d’impôt
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