Real Estate Glossary: Understanding and Leaseback property tax exemption

Definition 1: The tax Leaseback

The acronym means Leaseback in GDS Furnished No Business. It is in fact an existing tax system since the late '40s that provide various benefits to taxpayers featuring furnished rental property. To qualify for this tax system, those should not generate above 23,000 euros annual revenue.

Naturally there are different advantages and disadvantages to this tax regime Leaseback. The main advantage of this scheme is certainly the fact that rents are collected even if the apartment (or other type of property) is not occupied. The investor also has a tax benefit on the income and can enjoy a VAT recovery on a new real estate Leaseback.

Among the main drawbacks specific to the system, there is the fact that the property owner can not accommodate or that the property depreciates over time and in a resale, there is sometimes made of moinsvalue .

Among the goods eligible for this status, there are retirement homes (institutions Accommodation for dependent elderly), the retirement homes, tourist homes, business residences or student residences.
Definition 2: the real estate tax exemption

The real estate tax exemption is a much more generic than the tax Leaseback term since the tax exemption for a set of legal practices that are implemented in order to reduce its income tax level.

Regarding tax exemption laws, the best known are: the Loi Girardin, the Besson law, Scellier now replaced by Duflot law), the law Borloo, the Leaseback status, nursing homes, the Malraux law, or the Aubry.