Do you want to build up your assets in Overseas France while saving money? Discover the main real estate tax systems in Martinique.
Investing in the Pinel law in Martinique
The Pinel law is a real estate tax system that allows you to benefit from a substantial tax reduction, under certain conditions. The amount of this reduction depends on the duration of the rental commitment, i.e. 12% over 6 years and 18% over 9 years.
To qualify, the total amount invested must respect the following two ceilings: €300,000 per taxpayer and per year and €5,500 per m² of living space. Note: since January 1, 2021, this tax system real estate relates exclusively to accommodation located in an apartment building. Houses, pavilions and others individual dwellings are no longer affected.
Investing in the Pinel Overseas Law in Martinique
The Pinel Outre-mer law is a system dedicated to real estate investments (new or in future state of completion) in the DOM-TOMs. More advantageous than in mainland France, it allows you to benefit from a substantial tax reduction, ranging from 23% to 32% of the total amount invested, spread over 6, 9 or 12 years.
Like the Pinel law in mainland France, the investment cannot exceed €300,000 over one year and the purchase price per square meter of living space is limited to €5,500. Finally, this real estate tax system in Martinique allows to access a ceiling of tax loopholes of €18,000.
The ordinary property income regime in Martinique
The ordinary property income regime is intended for taxpayers receiving income for the rental of unfurnished premises: rents, rents... Thanks to it, certain works and charges can be deducted from income, resulting in a land deficit capped at €10,700 per year. Are concerned: administration costs, interest loans, provisions for expenses of co-owners, insurance premiums, maintenance expenses, repair and improvement, etc.
Note: the ordinary property income regime also concerns ancillary income, such as the rental of the hunting rights or rental of display rights.
Investing in the Malraux law in Martinique
The Malraux law is a real estate tax system allowing you to obtain a tax reduction for the renovation of a lodging. The rate applied, which is calculated on the amount of work and expenses related to the restoration, depends on the location of the building:
- In a site covered by a safeguard and enhancement plan (PSMV) or in a degraded district, it rises at 30%.
- In a site not covered by a PSMV, it is 22% (provided that the rehabilitation of the property has been declared of public utility).
In all cases, the total amount invested in renovation work is capped at €400,000 over 4 years.
Investing in bare ownership in Martinique
Investment in bare ownership is a very good way to acquire assets at an advantageous price, without weighing down your tax. This real estate tax system consists in acquiring the bare ownership of a property, while another investor buys the usufruct (i.e. the right to occupy or rent the accommodation).
However, the right of enjoyment of the usufructuary is limited in time (no more than twenty years in in most cases). At the end of this period, the bare owner automatically acquires the usufruct, free of charge. additional. Thus, you can buy a property in Martinique benefiting from a reduction of 35% at 50% of its freehold value.
Non-Professional Furnished Rental (LMNP) in Martinique
Non-Professional Furnished Rental consists of renting accommodation already equipped with functional equipment (storage, appliances, etc.). Thus, the tenant can occupy the accommodation by bringing only his belongings personal. This type of accommodation is particularly present in student residences, rental accommodation holidays or bed and breakfast.
This rental activity also offers tax advantages. Indeed, the Furnished Rental No Professional allows you to take advantage of the Industrial and Commercial Profits (BIC) regime, rather than being subject to the land revenue system. This advantageous tax system allows you to defer over 10 years your deficits.
Professional Furnished Rental (LMP) in Martinique
The LMP allows you to rent furnished accommodation on a professional basis. As part of this activity business, your income benefits from the professional Industrial and Commercial Benefits (BIC) system. That allows, for example, to allocate the deficits of your rental business to all of your income, which is impossible with the land revenue system.
To benefit from this status, you must be registered in the Trade and Companies Register (RCS), but also to collect income in excess of €23,000 per year, exceeding the other activity income of the tax household.
