French General Tax Code
In forceI. - A. - Taxpayers domiciled in France, within the meaning of Article 4 B, may benefit from a reduction in income tax in respect of expenses actually incurred for the work mentioned in II of this article, adopted from 1 January 2017 to 31 December 2019 at a general meeting of co-owners in application of Act no. 65-557 du 10 juillet 1965 fixant le statut de la copropriété des immeubles bâtis.
The tax reduction applies to work carried out on housing, completed at least fifteen years ago on the date of its adoption by the general meeting of co-owners referred to in the first paragraph of this A, intended for rental:
1° Part of a tourist residence classified under the conditions provided for in Article L. 321-1 du code du tourisme;
2° Or, failing this, belonging to a co-ownership comprising a classified tourist residence, if they are classified as furnished tourist accommodation, under the conditions set out in article L. 324-1 of the same code.
B. - The tax reduction applies on condition that the work is completed no later than 31 December of the second year following that in which it is approved by the general meeting of co-owners referred to in A.
C. - The tax reduction does not apply to homes where ownership is divided.
II. - The tax reduction applies to work, carried out by a company, relating to the whole of the co-ownership in respect of expenditure:
1° Provided that the materials and equipment concerned comply with the technical characteristics and minimum performance criteria set by the order provided for in the first paragraph of 2 of Article 200 quater, of acquisition and installation:
a) Of thermal insulation materials for glazed walls or insulating shutters;
b) Of thermal insulation materials for opaque walls;
c) Of heating or domestic hot water supply equipment using a renewable energy source;
2° Aimed at facilitating the reception of disabled people;
3° Of refurbishment.
III. - For a single dwelling falling within the scope of I, the amount of the expenditure mentioned in II, adopted between 1 January 2017 and 31 December 2019 at a general meeting of co-owners, giving entitlement to the tax reduction may not exceed the sum of €22,000.
Where the dwelling is jointly owned, each joint owner benefits from the tax reduction up to the share of the amount of expenditure on works corresponding to his or her rights in the joint ownership.
IV. - The rate of the tax reduction is equal to 20% of the amount of eligible expenditure set out in II.
V. - The tax reduction is granted in respect of the year of final payment by the co-ownership trustee of the invoice, other than progress invoices, from the company that carried out the work referred to in II and deducted from the tax due in respect of that same year.
VI. - A. - The benefit of the tax reduction is subject to the owner's commitment to let the property for at least five years from the date of completion of the work:
1° To the operator of the classified tourist residence, if the accommodation meets, on the date of completion of the work, the conditions mentioned in 1° of A of I;
2° To individuals, for a minimum of twelve weeks per year, if the accommodation meets, on the date of completion of the work, the conditions mentioned in 2° of A of I.
B. - If, on the date of completion of the works, the dwelling does not meet the conditions mentioned in 1° or 2° of A of I, the allocation for letting under the conditions provided for in 1° or 2° of A of this VI must take place within two months of this date.
C. - During the commitment period of at least five years, the property may be successively let under the conditions set out in 1° or 2° of A of this VI. The change in the conditions under which the property is let must be made within two months.
VII. - The expenditure referred to in II entitles the taxpayer to the benefit of the tax reduction provided that the taxpayer is able to present, at the request of the tax authorities, a certificate from the co-ownership manager containing:
1° The place where the work was carried out;
2° The nature and amount of this work and, where applicable, the technical characteristics and minimum performance criteria, mentioned in 1° of II, of the equipment and materials;
3° The name and address of the company that carried out the work;
4° The date of completion of the work;
5° The date of final payment for the work to the company;
6° The proportion of the work for which the taxpayer is responsible and the dates of payment by the taxpayer of the corresponding calls for funds.
VIII. - In the event of non-compliance with the rental commitment mentioned in VI or the sale or dismemberment of the right of ownership of the property, the reduction applied is subject to a reversal in respect of the year in which the event occurs. However, no reversal is made if the breach of the commitment, the transfer or dismemberment of the right of ownership of the home occurs as a result of disability corresponding to classification in the second or third of the categories provided for in article L. 341-4 of the Social Security Code, redundancy or death of the taxpayer or one of the members of the couple subject to joint taxation.
IX. - Expenditure on work giving entitlement to the tax reduction may not be deducted or depreciated when determining categorical income.
X. - For the same dwelling and in respect of the same year, the benefit of one of the tax credits or reductions provided for in articles 199 decies E to 199 decies G, 199 undecies B, 199 sexvicies and 244 quater W is exclusive of the benefit of the provisions of this article.
