Are you looking for ways to pay less taxes? Rest assured that the French tax code offers just over fifteen reductions. So, there is necessarily one, or even several, that will allow you to answer this question: how to reduce your taxes?
More than 15 levers to lower your taxes
How to reduce taxes is not so difficult when you are well advised. In fact, the Tax Code and the legislature have provided more than fifteen possibilities for the general public to reduce their taxes. They cover different areas:
- Real state
- Family and children
- Donations and volunteering
- Savings and financial products
How to reduce taxes on real estate?
New or old, real estate companies offer various solutions to reduce their taxation. Learn How To Reduce Your Taxes By Buying Or Renting A Property.
1. The Denormandie and Pinel devices
The Denormandie and Pinel systems focus on old and new purchases, respectively. But the terms are the same. Both allow rent to an ascendant or descendant and have a limit of € 300,000. Tax credits vary as follows:
- 12% discount if the accommodation is rented for 6 years
- 18% discount if the accommodation is rented for 9 years
- 21% discount if the accommodation is rented for 12 years
2. Furnished rental
Professional or non-professional furnished rentals offer tax breaks depending on the state:
- rents charged up to € 190 / m2 in Île-de-France and € 140 for other regions for renting a room in the main residence are completely exempt;
- rents charged for bed and breakfast are completely exempt if they do not exceed € 760.
- Non-professional furniture rental companies (LMNP) may choose to tax half of their income or deduct expenses and amortization;
- Professional furnished rental companies (LMP) declare their income in industrial and commercial profits (BIC) and not in real estate rents.
- Discover complete tips to optimize your rental investment at essor-immo.fr.
3. The bare property
By opting for a purchase by dismantling real estate, you escape the taxes and duties inherent in the property that remain the responsibility of the usufructuary. Also, do not pay any capital gains tax.
4. The Malraux Act
It allows you to reduce your taxes if you carry out restoration and heritage conservation work.
5. Energy work
Thanks to the tax credit for the energy transition (CITE), you can benefit from a tax reduction of up to € 16,000 per couple. To benefit from it, all you have to do is carry out thermal and acoustic insulation work or equip your home with equipment for the production of green energy.
Now you know how to reduce your property taxes.
How to reduce your taxes due to your family situation?
Married, PACS, cohabitant, with or without children? Here’s how to reduce taxes outside of child support and ex-spouse payments.
Childcare, tutoring, etc., you can pay less taxes thanks to your children.
And, if you’re living with children, know that it’s not necessarily wise to link them to the most important income. So do an online simulation to make sure you’re making the right decision. In addition, you can reduce your taxes by deducting a spouse’s pension from your income.
Now you know how to reduce your taxes thanks to the reductions granted to families.
How to reduce your taxes with donations?
You can reduce your taxes by making donations to associations, public benefit foundations, and humanitarian work. Donations are limited to € 15,000 per tax household and annual, except for donations to a political organization which are limited to € 4,600 per election and a maximum of € 7,500 per year.
And, if you’re committed to volunteering, you know you can reduce your taxes thanks to your non-reimbursed travel by the association. In fact, you can benefit from a reduction of up to 66% in actual costs.
Now you know how to reduce your taxes with your donations.
How to reduce your taxes thanks to your investments?
Various investments help reduce the tax burden. Learn How To Reduce Your Taxes With These Investments
One of the first investments to make is to hire a PER (Retirement Savings Plan) or a PERP (Popular Retirement Savings Plan). Indeed, payments are deductible from the taxable base up to 10% of professional income.
Other possible investments to reduce your taxes:
- invest in FCPI innovation investment funds and / or local investment funds (FIPs) to reduce their tax burden by between 18% and 38%;
- invest in the film industry through Financing Societies (SOFICA) to reduce their taxes by between 36% and 48%;
- purchase equipment for overseas France through the Girardin system and benefit from up to a 130% reduction in the amounts paid;
- investing in the press allows you to lower your taxes by between 30% and 50%;
- investing in a forest land group (GFF) or a land investment group (GFI) entitles you to a tax reduction of 18%.
Now you know how to reduce your taxes with different investments.
How to reduce taxes thanks to home services?
When you work for someone at home, it is possible to lower your taxes. Learn How To Reduce Your Taxes While Getting Help At Home.
Cleaning, computer troubleshooting, gardening, babysitting, etc. open the right to reductions of half of the amounts spent without exceeding the maximum limit of € 12,000, with a tax credit of € 6,000. An increase of € 1,500 per dependent child or member of the tax household over the age of 65 is possible.
Still wondering how to reduce your taxes? Use all possible discount levers to lower your taxes.