Obtain our catalogue
Our designs
Some of the homes...

• History
• Our expertise
• Our commitments

Seniors
Open
House for 15€/day
Bioclimatic
Maisons Performances
Scellier's Law
Photovoltaic products

• Inter-regional service
• Welcome Service
• Your building plot*
• Finance
• Our partners

• Your budget
• Your location
• Your layout
• Your house

MFC Invest
For your rental investment

Given the multitude of savings products with unpredictable returns or low yields, property has been and continues to be the leading investment vehicle - and should remain so for some time to come, in light of the strong rental demand and need for housing in France.

Will building an MFC home reduce your taxes?

By having your own house built, you can benefit from certain tax advantages and thereby kill two birds with one stone:

Initially, by renting it out to claim tax deductions; and
Subsequently, by living in it or selling it on.

Indeed, quite apart from the tax advantages, rental investments are secure, easy to set up, and profitable.

The sales advisors in our MFC Invest Department, with additional support from our partners, will be happy to guide you through the process and help you:

Select the best plot, individual or mixed (owner-occupied/rented), so as to maximise the potential for a capital gain. The land purchase is legally separate from a building contract, and is subject to the reduced VAT rate of 5.5%, as opposed to the 19.6% rate applicable to other purchases in France. What's more, legal fees apply only to the land purchase.
Outline a plan for a rental property that will be easy to turn into your main residence later.
Optimise the financing and tax impact of your plan.
Establish a turnkey building contract for a "ready-to-rent" home.
Set up a management mandate for the asset rental.

Regardless of the arrangement you have chosen, at the end of the minimum required rental period you can either live in the home yourself or sell it on for a capital gain.

Rental investment:

The Robien Recentré and Borloo Populaire schemes

Given the uncertainties about the future, unpredictable returns on investment products, and low yields on cash holdings, property has been the favoured investment vehicle for quite some time, and may continue to dominate for many more years, depending upon rental demand. In terms of options for personal wealth management and additional revenue streams, rental investments are secure, easy to set up, and profitable - quite apart from their considerable tax advantages.

On 1 September 2006, the Robien Recentré scheme came into force in France to encourage the building of vacant rental housing in areas with tight property markets. The Borloo Neuf or Populaire scheme was also set up to promote intermediary rental investments in new building or renovation of older properties.

The main differences between the Robien Recentré and Borloo Populaire schemes:

The Robien Recentré offers fewer tax benefits - The allowance for depreciation is capped at 50% of the total investment, spread over a period of nine years. There are no restrictions on tenants' incomes.

The Borloo Populaire is more attractive from a tax standpoint - The allowance for depreciation can be up to 65% of the property purchase price or total construction cost, spread over a period of 15 years, and the gross income from the property is eligible for a 30% tax deduction. However, rents are capped at a level 20% lower than in the Robien Recentré scheme, and restrictions are placed on tenants' income.

The Robien Recentré scheme:

The Robien Recentré scheme allows tax concessions for income from rental investments, and applies to private houses and residential property under construction.

What are the advantages?

An income tax deduction of up to 50% of the property purchase price, with 6% taken during the first seven years, and 4% during each of the following two years:
(6% × 7 yrs) + (4% × 2 yrs) = 50%

Up to €10,700 property loss deductible per year.

Secured rent payments - The housing benefit can be paid directly to the owner. In addition, if the tenant works for a company contributing to the “1% Logement” employer-sponsored housing assistance programme, the rent payments can be guaranteed.

The property can be rented to family members, as long as these are not part of the owner's tax household.

What are the restrictions?

The property must be rented unfurnished for nine years.

The property must be rented within 12 months of the date the owner takes possession.

There is a fixed allowance of 6% of the rent received.

Rents are capped according to the zone in which the property is located, as follows:

Zone	Maximum rent - New homes (per sq. metre, excl. charges)
Zone A	€19.89
Zone B1	€13.82
Zone B2	€11.30
Zone C	€8.28

Zone A = Île-de-France region (Paris and inner-ring suburbs), Cote d'Azur region, and French Geneva.
Zone B1 = The 23 urban areas in France with over 250,000 residents, plus certain other smaller urban areas.
Zone B2 = Urban areas with between 50,000 and 250,000 residents.
Zone C = The rest of France.

The surface area to be taken into account is the area of the accommodation plus half the area of any balance spaces (cellars, pantries, balconies, etc.), up to a maximum of 8 m2.

Example 1.* Robien Recentré scheme

A couple with one child and an annual income of €70,000 pays €5,500 in taxes. They invest €177,000 to build an 85 m2 house with a garage in Monteux (département of Vaucluse). They make a 5% down payment and take out a €168,000 landlord's loan for 20 years at an interest rate of 4%.

Deductible expenses		Income to declare
€10,620	6% of the investment for 7 years	€9,190.80	Rent = (88 m2 + ½ garage) × €8.28 (Zone C) × 12 months
€551	6% fixed allowance
€6,730	Loan interest
€1,200	Mortgage fees, rates, rent insurance, etc.
A = €19,101		B = €9,190.80
Deduction against tax = A – B = €9,910 (capped at €10,700)

€70,000 salaries, less the 10% and 20% general allowance, less the €9,910 property loss, gives:
Taxable income = €40,490 (instead of €50,400)
Income tax = €3,530 (instead of €5,500)
Tax saving in the second year = €1,970

Conclusion:
Cost of borrowing, including insurance = €13,440 p.a.
less Rental income (92.5 m2 × 12 months) = €9,190 p.a.
less Tax saved = €1,970 p.a.
Monthly outlay w.e.f. second year = €190/month
Total tax saved over 20 years = €22,771

The Borloo Populaire scheme:

The Borloo Populaire scheme allows tax concessions for income from rental investments, and applies to private houses and residential property under construction.

What are the advantages?

An income tax allowance of up to 65% of the property purchase price, with 6% taken during the first seven years, and 4% during each of the following two years. At the end of this period, the owner can take a 2.5% deduction per year for a maximum of two further 3-year lease terms where an existing lease is extended or renewed (automatically or otherwise), or provided the tenant's income requirement remains satisfied, where there is a change in tenant.
(6% × 7 yrs) + (4% × 2 yrs) + (2.5% × 6 years) = 65%

Up to €10,700 property loss deductible per year.

Fixed allowance of 30% of the rent received applied when calculating the taxable property income.

Secured rent payments - The housing benefit can be paid directly to the owner. In addition, if the tenant works for a company contributing to the “1% Logement” employer-sponsored housing assistance programme, the rent payments can be guaranteed.

What are the restrictions?

The property must be rented unfurnished for between 9 and 15 years.

The property must be rented within 12 months of the date the owner takes possession.

There is a fixed allowance of 6% of the rent received.

Rents are capped according to the zone in which the property is located, as follows:

Zone	Maximum rent - New homes (per sq. meter, excl. fees)
Zone A	€15.91
Zone B1	€11.06
Zone B2	€9.04
Zone C	€6.62

Zone A = Île-de-France region (Paris and inner-ring suburbs), Cote d'Azur region, and French Geneva.
Zone B1 = The 23 urban areas in France with over 250,000 residents, plus certain other smaller urban areas.
Zone B2 = Urban areas with between 50,000 and 250,000 residents.
Zone C = The rest of France.

The surface area to be taken into account is the area of the accommodation plus half the area of any balance spaces (cellars, pantries, balconies, etc.), up to a maximum of 8 m2.

Tenants' annual income must not exceed the limits given in the following table:

Category	Zone A	Zone B	Zone C
Single person	€32,269	€24,938	€21,820
Household with no dependants,(1) excluding young households(2)	€48,226	€33,301	€29,138
Single person or household with one dependant, or young households with no dependants	€57,971	€40,048	€35,042
Single person or household with two dependants	€69,439	€48,346	€42,302
Single person or household with three dependants	€82,202	€56,872	€49,763
Single person or household with four dependants	€92,500	€64,093	€56,081
Each additional person	+ €10,307	+ €7,149	+ €6,255

Zone A = Île-de-France region (Paris and inner-ring suburbs), Cote d'Azur region, and French Geneva.
Zone B = Urban areas with more than 50,000 residents and high-cost urban areas in outer Paris, coastal and border areas.
Zone C = The rest of France.
Maximum annual taxable incomes are:
Zone A: 180% of the PLUS limit for "Île-de-France excluding Paris and neighbouring municipalities".
Zone B: 160% of the PLUS limit for "Other regions".
Zone C: 140% of the PLUS limit for "Other regions".

(1) Dependant - Dependent children as defined by the French Tax Code, family members aged 65 or over with no taxable income, and handicapped family members.
(2) Young household - Married couple (or cohabiting joint signatories of the lease) with no dependants whose combined age is less than or equal to 55.

The limits given above in euros represent the total taxable income of the tenant's household during the last-but-one year prior to signing of the lease (year n-2). For example, if the lease was signed in 2006, it would be based on the income for 2004.

Example 2.* Borloo Populaire scheme

A couple with one child and an annual income of €70,000 pays €5,500 in taxes. They invest €177,000 to build an 85 m2 house with a garage in Monteux (département of Vaucluse). They make a 5% down payment and take out a €168,000 landlord's loan for 20 years at an interest rate of 4%.

Deductible expenses		Income to declare
€10,620	6% of the investment for 7 years	5 143,74 €	Rent = (88 m2 + ½ garage) × €6.62 (Zone C) × 12 months
€308	6% fixed allowance
€6,730	Loan interest
€1,200	Mortgage fees, rates, rent insurance, etc.
A = €18,858		B = €5,143.74
Deduction against tax = A – B = €13,714 (capped at €10,700)

€70,000 salaries, less the 10% and 20% general allowance, less the €10,700 property loss gives:
Taxable income = €39,700 (instead of €50,400)
Income tax = €3,700 (instead of €5,500)
Tax savings in the first year = €1,800

Conclusion:
Cost of borrowing, including insurance = €13,440 p.a.
less Rental income (92.5 m2 × 12 months) = €7,348 p.a.
less Tax saved = €1,800 p.a.
Monthly outlay w.e.f. second year = €357/month
Total tax saved over 20 years = €45,430

* This is an example of a hypothetical household for illustration purposes only. We suggest visiting your nearest Maisons France Confort office for a personalized estimate.

[ Request details ]

• Financial information
• Bourse
• Annual report