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Tax allowances: everything you need to know about the Robien recentré legislation

Under the Robien recentré tax reduction legislation, you can deduct up to 50% of the new property purchase price you’re your rental income over 9 years.

Which types of property?

In order to benefit from the Robien recentré tax reduction legislation, your property must:
  • be located in France (mainland France of one of its overseas départements),
  • be new or purchased in for future completion (VEFA),
  • have been purchased since 1 september 2006,
  • be let unfurnished for at least 9 years within 12 months following the date of completion of building works or the date of purchase.
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Which types of tenant?

In order for you to claim the tax benefits, your tenant:
  • must use the property as his/her principal residence,
  • must not be a member of your taxable household. However, he or she may be related to a member of your taxable household.
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How much should the rent be?

When setting the level of rent for your property, look at what is being charged by other landlords in the same market. Do bear in mind though that the rental amount must fall below the maximum set for the geographical zone in which the property is located.
The monthly rental is calculated exclusive of charges on the basis of the usable floor area, i.e. the living area* plus half of all ancillary areas** up to a maximum of 8 m² (e.g. cellar, basement or balcony).

* Article R 111.2 of the French Code de la construction et de l’habitation (Building and Housing Code)
** See Article 1 of the French Decree of 9 May 1995

The maximum monthly rentals by zone for leases signed in 2006
Zones Location Maximum monthly rental per m²
A
  • Paris, the petite couronne and deuxième couronne up to the limits of the Paris conurbation
  • Côte d’Azur (the coastal strip between Hyères and Menton)
  • French Geneva
 €21.02
B1
  • Conurbations with populations of over 250,000
  • The grande couronne around Paris
  • Some conurbations with high living costs*
  • Around the Côte d’Azur
  • Overseas départements, Corsica and islands
 €14.61
B2
  • Other conurbations with populations of over 50,000
  • Other border or coastal areas with high living costs
  • Within the Ile-de-France
 €11.95
C
  • The rest of the country
 €8.76

* Annecy, Bayonne, Chambéry, Cluses, La Rochelle and Saint-Malo

Worth knowing: the maximum limit on allowable monthly rentals is raised on 1 January every year in line with the change in the Indice de Référence des Loyers (IRL) (Rental Reference Index) published by the INSEE (French National Institute for Statistics and Economic Studies).
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What are the tax allowances?

So, in addition to the allowances granted by the general tax regime, you can deduct up to 50% of the new property purchase price (including legal fees) from your rental income, as follows:
  • 6% per year of the purchase price in the first 7 years, i.e. a 42% deduction over 7 years,
  • 4% per year for the next 2 years, i.e. a total of 8% over 2 years.
Calculate how much tax you could save under the Robien recentré legislation
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How do I claim them?

These tax allowances are not granted automatically. You must ask your Centre des Impôts (Tax Office) when you make your tax return for the year following completion of the building or the acquisition of the new property.


Please don’t hesitate to ask your Bouygues Immobilier advisor, who will help you complete all the necessary formalities.
Jean-Pierre Tougeron, Sales Manger in Nantes explains how it works
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