France will abolish the tax deduction for buyers of new housing

The French government is going to repeal the law Selye (loi Scellier) under which buyers of new housing can recover part of the amount spent if they hand over this property to rent. True, money won’t be available immediately: instead, the owner has the right for nine years to pay less income tax.

The law Selye was adopted in 2009. Largely thanks to this innovation housing construction in France went up the hill. Initially, the law provided for compensation of 25% of the value of the property. In 2011 this rate was lowered to 22% and at the beginning of 2012 to 13 %.

To abolish the law Selye proposed by the previous government, the head of which stood Nicolas Sarkozy. However, supporters of Francois Hollande is also in favor of the abolition of this order. This was stated by new Minister of housing cécile Duflot. According to her, the law Selye will operate a maximum of 31 Dec 2012.

Experts fear that the sale of primary residence in France can be dramatically reduced. The pace of construction is already falling: in the first quarter of 2012 was started by 12.9% fewer new features than in the fourth quarter of 2011.

Elena Milashenkova, Tranio.Ru

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