5,5% VAT for buying in new-build in urban renovation areas (ARNU zone)
The article n°28 of the Act concerning the national commitment for housing of the 13th July 2006 enables to get a reduced VAT rate for operations of property purchase in ARNU zones (defined by the National Agency for Urban Renovation).
It is a tax shelter system in order to attract new owners, thanks to a reduced VAT rate of 5,5%, for the purchase of a new accommodation. Instead of paying a 20% VAT, since the 1st January 2014, the buyer choosing an accommodation in ARNU zone, or in a perimeter of 300 meters from a zone enjoys a 5,5% VAT rate only. This VAT rate has been set up to reinforce the social diversity in around 500 neighbourhoods, that are led to grow, outside very important urban development works.
In ARNU zone, the new accommodations purchased with a reduced VAT must be used as a primary residence, and are intended for natural and legal people, whose funds do not exceed the ceilings augmented by 11%. The minimal length of time for a possession of the property is 10 years.
10% VAT for investing with the Duflot Act
From the 1st January 2014, a new category of accommodation has been created : the Intermediate housing. It is a new accommodation located in the areas concerned by the Duflot Act. The purchasers get an intermediate VAT rate of 10%. Each accommodation must be rented as a primary residence, and is exempted of paying the property tax for 20 years. The accommodations must also be integrated in a real estate plant including at least 25% of social housing.
5,5% VAT and 10% VAT for some refurbishment works
The VAT rate for renovation works, set at 7% since the 1st January 2012, is raised at 10% from the 1st January 2014 for works of refurbishment, transformation, adjustment or maintenance.
The 10% rate applies to the works started in accommodations completed for more than two years. If premises had a primary use different from housing, but, after works, become an accommodation, it can be concerned too.
This rate is set at 5,5% for the works of improvement of the energy efficiency of the accommodations. Renovation work or energy improvement means : the putting on, the installation and maintenance of energy materials and equipments respecting the technical features and the minimal efficiency standards. The affected accommodations are the ones completed for more than two years and it concerns the expenses for “environmental quality of the primary residence” (official name). From the 1st January 2015, to get a tax credit, the taxpayers must call on companies who obtained the RGE (RRE) certification : recognised as responsible for the environment.
This is the place where we realise MyLiberty, a residence with contemporary lines, composed of spacious bright apartments, with multiple orientation views over the city the port or the sea.