On January 31, a joint committee finalized a unified text for the 2025 finance bill, introducing key changes in real estate. The new bill proposes extending the zero-interest loan (PTZ) nationwide and offers tax exemptions for monetary gifts towards primary residences. It allows local authorities to increase transfer taxes but protects first-time buyers under specific thresholds. Additionally, rental investment taxation adjustments and a lessened budget cut for the MaPrimeRénov’ energy renovation program are also anticipated. Further modifications may arise before the National Assembly review.
Overview of the 2025 Finance Bill Developments
On January 31, a joint committee comprising senators and deputies successfully crafted a unified text for the upcoming 2025 finance bill, bringing forth significant updates in the realm of real estate. This article highlights the anticipated changes that could reshape the housing landscape.
Key Changes to the PTZ and Housing Donations
One notable proposal in the new finance bill is the extension of the zero-interest loan (PTZ). Previously, from April 2024, this initiative was restricted to first-time buyers seeking new homes in high-demand areas. The revised plan aims to broaden the PTZ’s availability across the entire country, including less populated regions and new constructions. However, the regulations for purchasing older properties remain unchanged, as buyers must still undertake energy renovation efforts, as per government sources.
Additionally, the joint committee has proposed an exemption from transfer taxes for monetary gifts intended for the purchase or construction of a primary residence, along with related energy renovation expenses. This exemption will apply to donations made to children, grandchildren, great-grandchildren, or, if necessary, nephews and nieces, up to a maximum of 100,000 euros per donor and 300,000 euros per beneficiary. Nevertheless, buyers are required to maintain ownership of the property for a minimum of five years. The government may still refine this proposal, as its initial focus was to limit this tax benefit to direct descendants for the acquisition of new homes.
Impact of Increased Transfer Taxes and Rental Investment Adjustments
In a contrasting move, the joint committee’s text allows local governments to raise transfer taxes on property transactions (often incorrectly labeled as notary fees) by 0.5 percentage points. However, first-time homebuyers will be partially protected from this hike for the portion of the taxable value not exceeding 250,000 euros.
For those interested in rental investments, the joint committee has proposed amendments to Article 24 of the finance bill, which seeks to elevate taxation on non-professional furnished rentals (LMNP). This article initially intended to incorporate accounting depreciation—an annual reduction in property value—into the capital gains tax calculation, thereby increasing the tax burden upon resale. The compromise reached exempts elderly or disabled care facilities, senior residences, and student housing from this measure, yet tourist accommodations will still be affected.
Lastly, discussions within the committee indicate that budget cuts to the MaPrimeRénov’ program for energy renovations may be less severe than initially expected. A committee member noted that negotiations have preserved approximately 100 million euros for this crucial initiative, resulting in a “only” 460 million euro reduction in the budget for 2025.
As the 2025 finance bill prepares for examination in the National Assembly, further adjustments may occur. François Bayrou is expected to invoke Article 49.3 of the Constitution to expedite the process, potentially bypassing a parliamentary vote.