France will expand the boundaries of rental housing for 40 000 units

France will expand the boundaries of rental housing for 40 000 units

Since 1 January 2013 France starts to stimulate housing for rental. Now, investors who purchase a new real estate for rent it out will benefit from a tax deduction of 18% for 9 years. However, for receiving these benefits, landlords will have to rent property at least for 20% cheaper than the average market price.

Due to the new system the French government plans to increase the construction of rental housing for 40 000 units in 2013.

At the same time French government will increase taxes on undeveloped land. It will be ban to distribute the land without its immediate development, especially in regions with poor residential property. These measures will stimulate housing construction.

Also will be changed tax on vacant property. Previously this tax was actually only for cities with the population over 200,000 people. Now measure the fiscal impact will be applied to the owners of vacant properties in cities with population over 50,000 people. The amount of tax will be 12,5% of the cost in the first year of downtime and 25% after.