TrishT Posted February 15, 2005 Share Posted February 15, 2005 I have done an LF search for the last year but nothing has come up. I am trying to find out about the loi de robien which I have seen mentioned on some french immobilier sites. I have copied their explanation and translated it but it comes out disjointed and a lot of the words don't translate. It seems to say that you can buy some properties for 50% of their real value now and then pay the outstanding 50% back out of your profit when you sell it, presuming you have made more than the 50% owing of course. Have I understood this correctly? Link to comment Share on other sites More sharing options...
Richardbk Posted February 16, 2005 Share Posted February 16, 2005 My understanding of the Robien law is as follows- you buy a property to rent out for a minimum of 9 years. The rental must be for a primary residence but can not be the investor's primary residence. The property can be rented by children / parents of the investor as their primary residence.- The property must be in one of the designated areas where the Robien law applies - there are quite a lot.- there are fixed maximum rental limits that you can charge depending on the area were the property is located.- For tax pruposes you can deduct all interest charges, set up and management fees from the rental. - in addition if there is a deficit on the above calculation you can offset uo to 10700euros/year against other income tax charges. Any additional deficit can be carried forward to subsequent years.- if you sell the property after 9 years you will have to pay back a small part of the tax gains, but if you keep it for 15 years there is nothing to pay back. In effect the law is to encourage construction of new property by private investors and can be used as a financial tool to build up a long term private investment or future housing need. In general it is most effective when the whole investment is taken out by a loan - since all charges are used to offset the income. Significant additional tax advantages will depend your own tax situation. The claim of saving 45000euros of income tax is based on a top rate french tax payer ~49% claiming the maximum 10700euro/year deductible over the nine year period. a good web site is www.robien.fr best regards Richard Link to comment Share on other sites More sharing options...
TrishT Posted February 16, 2005 Author Share Posted February 16, 2005 [quote]My understanding of the Robien law is as follows - you buy a property to rent out for a minimum of 9 years. The rental must be for a primary residence but can not be the investor's primary residence....[/quote]How interesting. Many thanks for your time; I'm grateful to you for this information. Link to comment Share on other sites More sharing options...
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