How a home is financed can have some benefits. Here is the example of the development tax and the ZRL.
Your home is financed by a Zero Rate Loan? So it is possible to lighten your tax burden. This type of assisted loan can be coupled with a development tax that will then allow this tax reduction.
A tax reduction thanks to the ZRL and the development tax
What is the zero interest loan?
The Zero Rate Loan (ZRL) is a loan granted to borrowers who receive a certain level of income. It aims at the construction of a first principal residence, and is also obtained to buy an old housing with important works or a housing which involves works representing 1/4 of the financing operation.
The amount of the Zero Rate Loan is not unlimited, however, and the amounts obtained depend on your area of residence and the number of occupants in your dwelling.
the development tax, what is it?
Build, rebuild, develop, expand … all this requires a building permit, and a declaration beforehand. The development tax applies to a main dwelling.
This tax replaces since 2012 some taxes (local tax equipment: TLE, for example), its role is to finance the urban component of communities, including municipalities and the department.
This tax applies from the non-opposition of a prior declaration or an agreement of the building permit.
The ZRL, a tax advantage
A tax reduction is possible if the financing of the works that are subject to a building permit comes from a Zero Rate Loan. The Code de l’Urbanisme provides for a measure in its article 331-9 which states: “Operations financed via a ZRL may benefit from a 50% tax abatement. And beyond the reduction also granted for the first 100 square meters. “
However, there is something to be clear is that this tax benefit is not systematic because it is decided following deliberation within local and territorial bodies.
In the case where the development or construction of the dwelling did not take place, an owner is not liable to this development tax. If a surface area is less than what has been declared, it is possible to request a reduction after the event. Areas less than 5m² are exonerated ex officio as 10 year old buildings destroyed by a disaster and then rebuilt with a similar plan