TLDR: You must rent out the property unfurnished as the tenant’s main residence for at least nine years, to a person who is not part of your tax household, while complying with the applicable rent ceilings. Specific rules apply to certain territories, investments through an SCPI and the “intermediate Scellier” scheme.
The rental commitment
You must rent out the property unfurnished and designate it as the tenant’s main residence. The tenant must be a person other than a member of your tax household.
You must comply with this commitment for at least nine years. The rent must not exceed the applicable regulatory ceilings:
- Article 2 terdecies B of Annex III to the CGI for ordinary rental;
- Article 2 terdecies C of Annex III to the CGI when the property is rented under the conditions of the intermediate sector.
A specific duration in certain territories
For investments made from 1 January 2011 concerning properties located in New Caledonia, French Polynesia or the Wallis and Futuna Islands, the minimum duration of the rental commitment is five years.
This specific duration does not replace the ordinary nine-year duration for the other investments concerned.
Commitments relating to an SCPI
If you invest through an SCPI, the company must undertake to rent out the property under the conditions provided for by Article 199 septvicies of the CGI. For your part, you must undertake to retain all your shares until the end of the rental commitment undertaken by the company.
The tax reduction is also subject to the following conditions:
- 95% of your subscription must be used exclusively to finance an investment meeting the conditions of the scheme;
- the proceeds of the annual subscription must be fully invested within eighteen months following the closing of the subscription;
- the investment is considered complete when 95% of the amount of the subscriptions has been used to finance the acquisition, construction or renovation of eligible buildings, as part of a definitive commitment by the SCPI;
- shares whose ownership right is split do not qualify for the tax reduction under the cited provision.
The case of the “intermediate Scellier”
To benefit from the additional tax advantage of the “intermediate Scellier”, the SCPI must extend its initial rental commitment for one or two three-year periods.
You must then undertake to retain your shares for the same duration as the extension chosen by the SCPI. This requirement concerns the additional tax advantage of the “intermediate Scellier” and does not constitute a general rule applicable to every “Scellier” investment.