Interest payments on your primary residence are tax deductible in France
French tax residents can now deduct a portion of the annual interest payments on
the loan for their primary residence from their income tax for five years. People
who do not earn enough to pay income tax receive payments to reimburse part of their
interest from the tax authorities.
Deductible for up to 5 years
These new tax credits apply to 40% of interest paid during the first year and 20%
for the next four years. The eligible interest payments are capped at €7,500 for
a couple and €3,750 for an individual, plus €500 for each dependent. This means
maximum savings the first year of €3,000 for a couple or €1,500 for an individual,
plus €200 per dependent.
Broader eligibility for tax advantages
All French residents who purchase their primary residence have been eligible for
these tax advantages since May 6, 2007. What’s more, these tax credits are not limited
to a single acquisition, which means you can continue to deduct interest if you
sell your current home and purchase a new one with a new loan.
*** Terms and conditions applicable at June 20, 2008, reserved for Kaufman & Broad
customers for home loans granted by LCL after review and approval of your loan application.
Fixed-rate installment loan with adjustable repayment schedule and variable term
up to 17 years. Example: a 15-year €100,000 loan with a real interest rate (“TEG”)
of 5.23%, including insurance (compulsory death and disability insurance representing
0.27% per year for borrowers under 36 at the loan offer date). You make 300 monthly
payments of €802.91. The total cost of the loan is €44,523.80 including insurance
and waiver of administrative fees, excluding any fees for required guarantees. Borrowers
have a 10-day cooling off period. Sale subject to loan approval. If the loan is
refused the seller is required to reimburse all deposits(L312-5 du code de la consommation.).
Please see general terms and conditions available at our sales offices.
CREDIT LYONNAIS, SA au capital de 1 846 714 837 €, SIREN 954 509 741 – RCS LYON,
siège social : 18 rue de la République 69002 LYON, siège administratif : 19 boulevard
des Italiens 75002 PARIS, inscrit sous le numéro d’immatriculation d’intermédiaire
en assurance ORIAS : 07 001878.