Real estate advice


Real estate assets and their tax benefits

Historic real estate investing is still an attractive choice for tax benefits. In the case where you have significant income, you have the opportunity to participate in heritage conservation while taking advantage of this advantageous tax. The tax exemption in Historic Monuments 2018 concerns all taxpayers domiciled in France (according to Article 4B) who own or acquire a Property Classified, Registered or Accredited by Cultural Affairs and who do Restoration Work (dwellings intended for renting).

avantages fiscaux 2018

A very interesting tax in 2018
With the introduction of the withholding tax planned for 2019, the year 2018 is the right moment for you to invest in historic monuments. Indeed, the taxation of this sector allows you to allocate all the property losses as well as the interest related to the mortgage on your overall income.

It should also be noted that the sums committed for the realization of work during the year will be deductible from your income in 2018. Thus, the historic real estate investment allows important tax advantages, and is optimized for the taxpayers submitted in the tax brackets of 41% and 45%. Deductions on the overall income of these investors will be more profitable than tax cuts.

Tax benefits for high incomes
The tax benefits associated with this scheme are interesting, especially for people with income subject to tax brackets of 41% and 45%. To benefit from this advantageous taxation, the investment must be made by the entire purchase of the building and kept for a minimum period of 15 years. Indeed, the historical real estate regime does not allow tax exemption in case of acquisition condominium, unless authorized by the Minister.

The particular scheme of the historic real estate also offers benefits in terms of inheritance fees. In fact, the acquired historical heritage is entirely exempt from inheritance tax. This exemption is conditioned by certain rules of opening the property to the public.

One of the other tax benefits of investing in historical wealth is that you are not subject to the overall cap of tax loopholes.

Obligations related to historical investment
Because the historic real estate regime offers significant tax benefits, investors must meet certain conditions. The main obligation for the investor is that he must undertake restoration work of the historic property acquired. As these buildings are classified or recognized as historical monuments, the legislation obliges investors to call on an Architect of the Buildings of France for the realization of these works.

Historic real estate investing is not just a story of tax benefits. Indeed, the objective is also the preservation of heritage which is governed by several rules and administrative authorizations.