Guide
Aids to finance renovation work
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Written by: The Editorial Team
Renovation work is commonplace in real estate. Investing in a house to renovate, and renovating it is often the approach taken by several real estate investors. The advantage of this investment method is the available aids for carrying out the work. Whether you are a homeowner or tenant of a property, you can benefit from several aids for carrying out your work. They allow you to cover the expenses for renovations partially, or completely depending on the nature and amount of the aid.
What are these aids to finance your work? What are the conditions to take advantage of these aids? Let's look at all this in a few paragraphs. This article informs you about the aids put in place by the government to finance renovation work.
My Renovation Bonus
My Renovation Bonus is an aid solution to finance energy renovation projects. It was activated from 1st October 2020, with the objective of partially financing energy renovation work for all households. The bonuses are received based on your standard of living and the amount of work you plan to carry out in your home.
The maximum amount of bonuses is 40% of the amount of renovation work if your household is considered to be in the affluent household category. If you are a household with intermediate income, the bonus covers 60% of the amount of renovation work. For households with modest income, the bonus covers approximately 75% of the amount of renovation work. For the last standard of living of households, that is, households with very modest income, the bonus subsidizes up to 90% of the amount of renovation work.
Who can benefit from My Renovation Bonus bonuses?
All households are eligible to receive the bonuses issued by My Renovation Bonus. As you could see in the previous paragraph, the amount of bonuses depends on your standard of living. And to prove that you are part of one household class or another, you will need a few documents.
The ecological loan at zero interest rate
The zero-interest eco-loan is an ecological loan found among the aids to finance work. As its name suggests, it is a loan with a zero interest rate, which can go up to 30,000 €. It is a very advantageous aid, but unlike My Renovation Bonus, households that can benefit from it must meet certain well-defined conditions.
Who can benefit from the zero-interest ecological loan
Before being able to benefit from the ecological loan at 0% interest rate, the residence targeted by the renovations must be your main residence. Moreover, it must be a property whose construction was completed before the date of 1st January 1990. Without these conditions, you are not eligible to receive this ecological loan.
The energy check
The energy check is an aid distributed annually as a check directly sent to the aid applicant. The amount of this aid varies from 48 to 277 €. It is much more of an aid allocated to complement the other aids, because its amount is really too low to consider energy renovation unless it is really done on a low budget, or concerns only places like windows or the garage door.
Who can receive the energy check?
The energy check is addressed to all households with modest incomes. To receive it, you must submit a tax return. Before receiving an energy check, your reference tax income must be less than €10,800 per year. In other words, you must earn less than €10,800 per year to be eligible for the energy check.
Reduced VAT rate
Reduced VAT rate is also one of the aids you can benefit from for home renovation work. It is an aid that reduces VAT to 5.5% or 10% for your renovation work.
Who can benefit from the reduced VAT rate?
To benefit from the reduced VAT rate, the property must have been completed for more than 2 years, and it must serve as your primary or secondary residence. VAT is addressed to owners, landlords, and tenants of the properties concerned, as part of energy renovation work.
Good to know about these aids:
Energy renovations are all the work aimed at optimizing your home for heating. All aids can be combined with each other, in order to cover a larger portion of the costs, or even pay nothing out of your own pocket. Thanks to renovation aids, you can carry out your work without major concerns, regardless of your standard of living and your geographic location in France.
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The editorial team
Passionate about overseas real estate, we follow daily the tax incentive schemes in the DOM-TOM. Our objective: to give you the keys to invest peacefully in Guadeloupe, Martinique, Reunion, Mayotte, French Guiana or Polynesia, with clear information and practical advice.
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