Update to the Property Investor's Guide following the Finance Law 2011

'Scellier' Regime
-Rental investment by physical person domiciled in France or a company not liable to company tax domiciled in France
-Housing situated in a qualifying zone, new and rented unfurnished for 9 years to a tenant, not a member of the investor's fiscal household, as a principal residence
-Amount of rent capped
-Low energy consumption buildings ('BBC' norm): in 2011 the rate is 22% and 18% in 2012
-Non-BBC buildings: in 2011 a rate of 13 and 9% in 2012
-Reduction corresponding to an amount limited to a price of 300.000 € spread over 9 years

'Scellier Ancien' Regime
-Housing for conversion or rehabilitation object of work of which the nature and extent leads to the creation of a new property subject to VAT

'Scellier Intermédiaire' (or Social) Regime
-Conditions of the capping of the tenant's resources
-Possibility to extend the lease after 9 years for twice 3 years
-Benefit of the regime for a total period of 15 years

'Girardin' (Scellier Outre-Mer) Regime

-Overseas rental property investment
-'Free sector' reduction of 36% in 2011 and 2012; 31.5% in 2013-2017 (solely 'intermediate' sector)
-'Social housing' reduction varies depending upon the habitable surface area
-From 36% to 46% in 2011
-From 36% to 46% in 2012
-From 31,5% to 41,5% from 2013 to 2017

'Censi-Bouvard' (LMNP - loueur en meublé non-professionnel) Regime

-Furnished rental investment by physical person domiciled in France (not by a company)
-The housing must be within certain structures with services
-Social or medical-social establishments for handicapped or elderly persons with accommodation, reception or care, or residences with services with a 'quality' label
-Residences with services for students
-Classified tourist residences with services
-Rental by commercial lease for 9 years to the operator
-Tax reduction of 18% in 2011
-VAT refund on the purchase price

Demessine Regime

-The rehabilitation of a classified tourist residence in a rural revitalisation zone (the regime is suppressed concerning purchase)