Renovating property in France

Renovating PROPERTY FOR SALE in FRANCE

In France there is a reduced rate of VAT for home improvements and renovation and there are also some improvement grants that are offered to help you along the way, and a tax relief on saving energy and disabled works. Another reason to buy a French Property!

These pages concentrate on the financial side of home renovation, and less on the technical side of actually doing it.

Improvement Grants

Grants (assistance) are available all throughout France for people who need them, although they are not all very generous and do depend allot on the Department you are renovating in. There is a strict criteria to get a grant, however this depend on each county or region, and all the home improvement operates under an agency called Anah.

Second Houses in France and Holiday Homes in France are not available for assistance. Landlords, tenants and owners of Property To Rent in France are eligible for assistance as long as the home has been rented out for at least 6 years or been lived in for 6 years.

When it ceases to be rented or occupied as a primary home the grant will become repayable, but if there is a very good reason (professional means, family matters etc) to relocate then the payment could be waived, and if you are on a low income you are eligible for assistance until the property is up to a ‘decent' standard by law.
The Grants will only fund a percentage of the work (this depending on how much you can do yourself) the rest of the money you have to find yourself. Savings will not be taken into account in the assessment of your resources.

What Properties Are Eligible For a Grant?
It must be a residential Property in France of at least 15 years of age. Non-residential Properties in France being converted for residential use are also allowed, including assistance for the conversion work
Disabled works or energy conservation properties are eligible no matter how old however to establish whether your property fits under that criteria you must contact your local Anah office.

Please not that the grant will just help with a percentage of the finance, not the whole thing and that a French Property in need of full restoration will not usually be considered.

Level of Grant – Criteria
Owner Occupiers

• Basic grant is 20% - up to €13,000 – however both these figures can be increased depending on the area, condition and how low the income is.
• If the property is considered insanitary it can be increased to 50% - up to €30,000.
• In certain situations it can be increased to 70%, very rarely.
• Landlord
• Grant ranges from 15% - 70%
• Highest level grants are only aloud if the landlord would let the property on a watched rent for minimum 6 years.

Work must be completed within 3 years unless you have a strong reason and it must be carried out by a registered professional. If the applicant is a professional the grant is reduced by 10%.
Eco Grant
A grant between 20% - 35% is available for energy conservation works, as long as they can be proved. The property must be over 15 years old.

Home Energy Conservation – Tax Credits
Tax Credits can be handed out for energy saving and heat insulation work on your Property in France. Only applies for primary homes not secondary ones.
The works that grant a tax credit.

• Double Glazing (15%)
• Thermal Insulation (25%);
• Thermostatic (25%);
• Solar heating (water) (50%);
• Wind power heating (water) (50%);
• Heat pump (50%);
• Condensing boiler (15%);
• Wood based heating (25%/40%);
• Rainwater harvesting (25%);
• Geothermal (40%);
• Thermodynamic pumps (25%);
• Energy Survey (25%).

You may not receive the tax credit until after the works, so manage your money carefully.
Interest free mortgages are also available for works involved in home energy conservation. These are available on the high street.

Disabled and Elderly Tax Credits
This is for kitchen fittings bathrooms and alarm systems. The tax credit is 25% however for lifts its 15%.
For a couple the maximum credit is €5000 and for a couple €10000.

Heritage Properties
For properties with historical interest in rural areas a tax relief of up to 50% is payable, only after the work is done in a 5 year period.
However the process of seeking financial assistance I such a property is a hard one, people will try and trip you up at every hurdle. It's also quite hard to be accepted as a Heritage property, you will be examined rigorously. Don't get your hopes up.

French Mortgages
Be it a first or second home; always consider a mortgage for home improvement.
Although life insurance is a must, Interests rates are much lower than the UK.
If you work in the private sector you are eligible for a mortgage that comes through your employer.
Also if you obtain residency then you can get a subsided mortgage from the government, although you can't borrow much.

Tourist Assistance
If you are renovating something in the interest of tourism then you are eligible for assistance to the costs, although there is no fixed rate for this – it differs from county to county and the situation you're in.
 

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