LATEST NEWS: SCELLIER AND CENSI-BOUVARD TAX-SAVING INVESTMENT SCHEMES

The Government, in its latest 2012 austerity plan, has just announced the abolition of the main tax-saving investment scheme known as Scellier. This scheme gives rise to an income tax reduction for investment in new-build property associated with a 9 year lease for property situated in certain geographical areas. The abolition of this scheme as of 31st December 2012 has just been announced. It will still be possible to invest in 2012 but the tax reduction will be reduced to 14% (reduction spread over 9 years, thus an effective reduction of 1.55% per annum) solely for those buildings certified as 'BBC' (Low Energy Consumption). For 'non-BBC' buildings no reduction will be possible. It is proposed to retain a rate that could go to 22% until 31st December 2011 for reservation contracts signed prior to this date subject to the condition that the deed of sale is signed prior to 31st March 2012.

Concerning other types of rental investment under the Censi-Bouvard (LMNP) scheme such as tourist residences and residences for students and the elderly, it is likely that this scheme will also be abolished at the end of 2012. This scheme concerns investments in residences complying with certain criteria associated with a 9 year commercial lease signed with the residence's operator. The rate of the tax reduction will be cut back to 12% in 2012 (reduction also spread over 9 years, thus an effective rate of reduction of 1.33% per annum) but, in all likelihood, such an investment will continue to give rise to a right to recovery of VAT (VAT at a rate of 19.6%) on the purchase price.

These modifications will be incorporated into the 2012 Finance Law which will be voted in December. In an uncertain legislative and economic context, it is possible that modifications will be made prior to the final vote. Certain commentators are of the view that, in any event, these schemes are much too important and that, as a result, they will not disappear definitely and will be replaced by new schemes at the time of the general elections next year...

17th November 2011

Our Picks
This 16th century château replete with historical elements and features is situated in the countryside under 5 minutes to a village with amenities. Approached via a courtyard, the dwelling, of approx. 564 m², comprises 8 bedrooms, including a fantastic round bedroom with domed roof in the watch tower, dining room, living room of 53 m² on the ground floor and a grand reception room with stone fireplace, mezzanine and exposed beams of 63 m² on the first floor, utility rooms, vaulted cellars and kitchen. In addition, on the second floor and the third floor of the tower there are a further 97 m² to be renovated to provide additional living space. The oldest part of the château dates from circa 1530. Historical elements and features include two stone spiral staircases, remarkable triangular red floor-tiles, stained glass windows and hagioscope. Former chapel of 72 m², 'pigeonnier' of 32 m². Central heating fired by wood pellets (boiler fed by a 7 t silo). Hot water production via solar panels. Swimming pool (10x5). Land consisting of garden, orchard, woods and pasture with mature trees of approx. 36,425 m². Additional land of 1.6 ha available to purchase separately. Dry moat protecting the watch tower. Outbuildings, totaling approx. 768 m², including former stables of some 208 m² on the ground with gallery above, workshop of 24 m² and barn of 180 m². Under 5 minutes to a village with good amenities.   
Ref: 2051-XML
EUR 1'155'000
 
Tucked away in the countryside, yet just over 5 minutes from two villages with all amenities, this stone farmhouse has been beautifully renovated and extended to offer comfortable living with all modern household conveniences. The dwelling of approx. 210 m² habitable surface area comprises 5 bedrooms and 4 bathrooms as well as a bright and spacious living room of 39 m², a good sized fully fitted kitchen of 27 m², both with access to terraces facing respectively East and South, and a study. A stunning walled in pool area with quality terrace surround and covered entertainment area has recently been completed. The property comes with approx. 5 acres of land, ideal for horses for instance and an outbuilding housing a workshop, utility room and woodshed. From all sides of the property, there are lovely views of the rolling hills.  
Ref: 2026-XML
EUR 495'000