Rental Property: does it need renovation in 2019?

Studios Paris Blog

Rental Property: does it need renovation in 2019?

If the scheduled work for 2019 can be postponed, it is better to wait until 2020 to implement it. With the introduction of the withholding tax in 2019, current income in 2018 and in particular property income benefited from a special tax credit (CIMR) making them non-taxable.

In this case, there is no tax incentive to deduct non-taxed income expenses.

In order to avoid a massive postponement of the work planned for 2018 to 2019, which could penalise the building trades, a transitional tax system has been put in place which provides that the amount deducted in 2019 will be calculated on the basis of the average expenditure on " manageable " work (i. e. work that is not of an emergency nature) carried out between 2018 and 2019.

An exception:
Good news: if you carried out renovation work in 2018 and do not incur any renovation expenditures in 2019, you can deduct half of the expenses incurred for work carried out in 2018 for 2019. Conversely, bad news: if you had no work expenses in 2018, you will only deduct 50% of the cost of the work done in 2019…

Finally, if you have financed renovations in 2018 and 2019, you can deduct the average of these expenses. In this case, it is preferable that the amount spent on the 2019 renovation work does not exceed the 2018 expenses, if you wish to deduct the whole amount of this renovation work. On the other hand, if the renovation work planned for 2019 can be postponed, it is better to wait until 2020 to carry it out. An exception: as assets acquired in 2019 are not covered by this mechanism, you can consider acquiring real estate in 2019 and renovate it without worrying about this temporary tax restriction.


Contact us if any questions regarding the taxation of a furnished apartment in Paris and its profitability.
+33 (0)1 42 59 43 05

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