The National Assembly could pass in the 2023 budget the deductibility of loan interest for first-time buyers. Nevertheless, the framework defined in committee remains quite strict and it is difficult to assess the number of possible beneficiaries.
Under Nicolas Sarkozy, the measure had ended in bitter failure. However, within the framework of the finance bill for 2023, the deputies of the majority could agree to restore the deductibility of loan interest. And, if in 2007 the system was open to all buyers of a principal residence, in 2022 the proposal is aimed at those who are making a first real estate purchase.
A ceiling of 7500 euros for a couple
The text voted on in the Finance Committee last week has been decided for a maximum ceiling to deduct taxes of 30% of the loan interest, within the limit of 3750euros per year for a single person and 7500euros for a couple who declare their taxes together. This amount is increased by 500 euros per dependent, and increased to 7,500 euros for a person with a disability and up to 15,000 euros per year for a couple when one of the members has a disability. The measure would be limited to the first seven years of the mortgage.
In Sarkozy’s version, the reimbursement covered 40% of the loan interest in the first year and 20% the next four, up to a limit of 750 euros per year for single people and 1,500 euros for couples.
A very well rated accommodation in the DPE
According to the text, one of the main constraints to this boost is that the housing meets environmental construction requirements. Buyers who undertake energy renovation work following the acquisition will also be able to benefit in the form of an income tax credit.
save up to 70% on your borrower insurance
This is an important amendment which aims to make France a country of owners, and owners of environmentally efficient housing, explained the deputy Renaissance (ex-LREM) of Val-de-Marne Mathieu Lefvre. Clear, the accommodation must obtain an A rating during its transition to the energy performance diagnosis (EPD).
A time-limited bonus
Last feature, and not least, the loan offer must have been made before January 1, 2026 and the purchase finalized no later than September 30, 2026.
It remains to be seen whether this will be enough to revive the real estate market weakened by the rise in interest rates, as defended by the patron saint of the majority deputies, Aurore Berg, in the explanatory memorandum for the amendment.