It is a measure intended for owners. In practice, the longer you have the lease, the lower the IRS rate that landlords will pay.
The current tax rate of 28% may be reduced by up to 10%.
The contracts lasting between two and five years will immediately have a reduction of 2 percentage points, to 26%. At each renewal, for the same period, a further reduction of 2 points will be applied. The maximum IRS decrease in these cases will be 14 percentage points.
Contracts that last between five and 10 years start off with less 5 IRS points, that is, 23%. Also applicable here is the progressive reduction rule, as contract renewals are made, also up to a maximum of 14 points.
For 10- to 20-year contracts, a 14% IRS rate will apply and if the contracts exceed 20 years, the reduction will be 18 percentage points, ie they will pay a 10% fee.
Affordable Rental Program
It is a measure intended for tenants, with landlords' tax effects. This new program aims to have affordable homes on the market with a reduced effort rate for families.
The maximum amount that rents may reach is not yet known, it will have to be defined later in the ordinance, but the starting point is to have an income less than 20% of market prices. Tenants will not be able to afford an effort rate of more than 35%.
Landlords wishing to place houses in this scheme will also have tax benefits, including total exemption from property income taxes, both IRS and IRC.
The program implies the existence not only of rental ceilings but also of a minimum lease term of three years, unless the house is for students. In this case, the deadline falls to nine months. An insurance contract will be required and lease registered in the Finance Portal.
Other measures
The contracts have a minimum term of one year, and must be renewable for three years, unless the two parties agree on another term. The landlord can terminate the contract if he invokes necessity of own housing in the house in question.
It will be possible to terminate a contract for works, but only when they involve the disappearance of the house. Otherwise, the contract is suspended for the duration of the works. If the contract is denounced by reason of works, the tenant has the right to be rehoused in an equivalent house.
Tenants may make urgent repairs to the house when the landlord fails to carry them out, and will be entitled to reimbursement.
The BNA is maintained and SIMA is created. There has been talk of the end of the National Rental Desk, which has existed since 2013 to facilitate eviction for layoffs. This figure will be maintained but will also be created the Injunction Leasing Service (SIMA) that defends the rights of tenants, namely the right to reimbursement of expenses incurred by works done in place of the landlord.
Old and disabled tenants will have special protection. In particular, tenants who are 65 years of age or older or have a disability equal to or higher than 60% who have entered into contracts before 1990. Protection applies in cases where there was a lack of information or response to force the NRAU, and they saw their contract going to five years, now running the risk of being evicted. If the tenants have lived in the house for more than 15 years (something that the parish council can prove with a certificate), the contract can only come to an end if the house is demolished or undergoes a deep work that forces the exit of those living there .
There is also another measure to protect the elderly and disabled, especially those who signed the lease between 1990 and 1999. These will not be able to be evicted as long as they have lived in the property for more than 20 years. Also here the contract can only come to an end if the house undergoes deep works.
Where there is no written contract, the lease shall be deemed to have an indefinite duration. This if the tenant proves that he paid rent and occupied the property for at least six months.
It will be possible to rent houses that are still being paid to the bank without prejudice to the owner. At present, there are banks that aggravate the spread of mortgage loans when the buyer informs that the house that bought is going to be leased. From now on, banks will be prevented from doing so.
Building affordable income homes will have reduced VAT rate. Building programs for affordable income will be created. In this case, who build with this goal, and ensure that the homes will have affordable rentals for at least 25 years, will pay 6% VAT, not 23%.
Landlords are free to pay IRS for damages. So far, landlords have paid IRS on the compensation they gave the tenants in case of eviction. From now on, "legally owed" damages, for example if the landlord wants to inhabit the house, do works or demolish, are exempt from tax.