Created by the amending budget law for 2016 to replace the “Borloo Ancien” and the “Besson Ancien”, the tax exemption device “Rent affordable” allows homeowners to rent their housing at an affordable rent level, to modest households, benefiting from a tax deduction on their rental income.
The scheme operates on a win-win basis: the landlord agrees to lease his housing at a lower price, in return for a tax allowance on the rents received, which may range from 15% to 70%, or even 85% in certain cases. The greater the effort on the rent, the higher the level of reduction.
How to benefit from the Affordable Rental Device?
The conditions for being eligible for this scheme are as follows:
- The accommodation must be nude (unfurnished) and located in a tight area;
- The dwelling must serve as the principal dwelling place for the tenant;
- The dwelling may not be rented to a member of the tax household, an ascendant or a descendant of the owner, or to a person already occupying the premises, except when the lease is renewed.
To benefit from the scheme, the owner must sign an agreement with the ANAH (National Housing Agency). In this agreement, he chooses the level of rent that he will apply: intermediate, social or very social. This will determine what the maximum rent he will be able to apply and what will be the tenant’s resource limits. The commitment is of at least 6 years, or 9 years when the owner benefits from work aid. The accommodation must be rented throughout the duration of the agreement.
Tax benefits depend on the area and the rent level
Depending on the location of the property (zone A, A bis, B or C) and the rent level provided for in the ANAH agreement, the tax reduction ranges from 15 to 70%. This reduction can even be as high as 85%. If the landlord chooses to rent his property in the context of rental intermediation: in this case, he entrusts his property to a third party (a real estate agency or a recognized organization) Or in a management mandate, with a view to sub-leasing or renting to precarious households. An example of rental intermediation: the Solibail device in Ile-de-France.
A location in zone C is not entitled to any reduction except in the case of rental intermediation (see table below).
The levels of tax reduction are summarized in the following table:
|Rent levels||Zone A bis / A / B1||Zone B2||Zone C|
|Intermediary||30 %||15 %||–|
|Social/very social||70 %||50 %||–|
|Rental Intermediation||85 %||85 %||85 %|