When we hear about a land deficit, this most often refers to a tax mechanism that makes it possible to charge charges and deduct them from property income.
This strategy legally implies renting naked for a minimum period of 3 years from the last deficit observed, but it allows the investor to renovate and maintain his property while being supported by a powerful tax impact on his property income in the appropriate context. .
Each year up to €10,700 (see €15,300 in special cases) can be deducted from your income.
If the amount of the land deficit generated exceeds this limit, the residue is chargeable to the income of the following 6 years
In this way, it is possible to use or carry over the land deficit over periods of up to 10 years. Over such periods of time, this type of investment requires a well-defined strategy in relation to the investor's context. It is thus very common to see landowners being accompanied by experts in carrying out this type of assembly.
Loan interest is deductible only from property income and not from overall income.
Investing in land deficit is: