A real helping hand for first-time buyers
The rate of VAT (Value Added Tax) has been reduced
from 19.6% to 5.5% on purchases of new homes in any ZUS (Zone Urbaine Sensible) that has entered into an urban renewal agreement with the Agence Nationale de Rénovation Urbaine (ANRU). New homes located within 500 metres of these zones also benefit from the reduced rate of VAT.
This new tax provision is one of the measures designed to boost wider property ownership and help you buy your main home.
Worth knowing: you may also be able to use an interest-free loan to fund your purchase.
To be eligible for the reduced VAT rate of 5.5%, you must:
- make the new property your main home
- have an income below the upper limit set for the geographical area in which you are buying.
The Bouygues Immobilier opportunity
Bouygues Immobilier is developing homes that meet the requirements set by the latest measures introduced to promote property ownership. Their aim is to encourage a broad social mix and contribute to the regeneration of selected urban areas. The reduced VAT rate is consistent with the socially-responsible policies of Bouygues Immobilier.
Franck Ménard, Developments Manager at the Hyères branch, has seen the positive effect that such encouragements can have:
“One of our developments, at La Seyne-sur-Mer, contains around a hundred homes that qualify for the reduced VAT rate, and we’ve seen a dramatic increase in the number of reservations since this reduction came into effect. Of the 38 reservations we’ve taken so far, 29 have been at the reduced VAT rate!”