Tax Adjustment and Zero Rate Loan

Tax Adjustment and Zero Rate Loan

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?

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.


some precisions

The ZRL, a tax advantage

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

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