The Scellier scheme

As well as being a low-risk investment, investing in property offers a number of tax advantages. These substantial incentives can make a very significant contribution to your buy-to-let investment plans.

Bouygues Immobilier is a leading developer in the new-build residential property market, and a major player in France. Our advisers will answer all your questions on buy-to-let investment and all the tax incentive schemes available.
A new tax incentive scheme to encourage investment in rental property was launched in France on 1 January 2009: the Scellier Law scheme. As the successor to the Besson, Robien recentré and Borloo schemes, the Scellier scheme offers additional tax benefits for buy-to-let investors.

- the key principles of the Scellier scheme:
Investing in rental property under the terms of the Scellier scheme entitles you to tax reductions of up to 37% on the purchase price of the property. The tax benefit no longer applies as an allowance against rental income, as is the case with the Robien and Borloo schemes.

- the advantages of investing in buy-to-let property under the Scellier scheme:
The advantage is primarily a tax reduction equivalent to 25% of the cost of the property (over 9 years) for investments made in 2009 and 2010, reducing to 20% (also over 9 years) for investments made in 2011 and 2012. The maximum investment limit is €300,000. So, for example, if you invest €200,000 in 2009, the tax saving will be €50,000 over 9 years, which equates to €5,555.55 per year (annual maximum tax reduction of €8,333).

- Eligible property:
To be eligible for the Scellier scheme, the property must be new and comply with all the thermal insulation and energy performance criteria and standards contained in Article L.111-9 of the French Building and Occupancy Code.

- Who is eligible to claim tax reductions under the Scellier scheme:
This scheme is open to all French taxpayers investing in new-build property to let (or property bought off-plan prior to completion). The investment must be made between 1 January 2009 and 31 December 2012 for the purposes of unfurnished letting over a minimum period of 9 years.