The fiscal systems
The exemption systems the most common are the Robien (refocused) and Borloo systems.
- “Robien refocused” (or restructured) system
The new buildings, acquired as from 01.01.2003 and rented with use of main home, empty (for one physical person other one than a member of the household), on requirement of rent only, for 9 years at least, are aimed.
Calculation of the purchase price writing off (and\\or rebuilding or expansion expenses):
- 6 % every year, during 7 years
- 4 % for each of the next 2 years (impossible prolongation beyond 9 years)
- “Borloo new” system (or “Borloo popular")
This new system allows the owners of housing rented to persons having modest incomes (neither an ascendant nor a descendant) to benefit from different fiscal advantages, depending on whether the building is new or former. The empty housing, rented at use of main home, on requirements of rent and resources of the tenant, are aimed.
This system applies to the investments realized as from 01.01.2006, rented during 9 years at least.
- Calculation of the land incomes writing off
The deduction is the same as with “Robien refocused” system with possible prolongation of the deduction at the end of 9 years, at a rate of 2,5%, per period of 3 years and within the limits of 6 years, if the requirements of rent and resources of the tenant remain respected.
What is the difference between these two systems?
For a rental investment in “Borloo popular”, the depreciation can go up to 15 years, for a total of depreciation of 65 % of the investment price. The system “Robien refocused” can go only until 9 years, with a depreciation not exceeding the half of the investment price.
- Level of ceiling of the rents
With Borloo, the rents per square meter are limited to approximately 70 % of the free market price, according to the defined zoning. In a rental investment with “Robien refocused”, the rents are lower than about 10 % of the free market price.
- Ceiling of resources
The “Borloo popular” system foresees a ceiling of the resources of the tenant : the property must be rented to households with incomes not exceeding a definite ceiling, unlike the Robien system (former and refocused).
- Inclusive reduction
In the system Borloo, a tax allowance of 30% on the received rents is foreseen. For “Robien refocused”, the tax exemption was deleted on July 1st, 2006. On the other hand, some expenses (insurance premiums, management charges, service charges and land taxes) can be deducted for their real amount.
The guarantee against unpaid rents