Which investments to choose in order to pay less tax
Did you know that it was possible to pay less tax through good investment planning? Here is a recap of some of the investments which are particularly tax efficient.
PROPERTY INVESTMENTS: A VALUABLE ASSET
It’s a fact: property is a sound investment. If this is going to be your first investment and you don’t want to take any risks, then we advise that you consider this solution.
The Pinel law, that you may have already heard of enables you to obtain a tax deduction that can be as much as 31% of the price of 2 properties per year. The properties must be classed as low-energy properties (Bâtiments basse consommation – BBC) and have been bought in order to be rented out.
The total investment for your property must not exceed 300,000€. Depending on the purchase agreement you can benefit from the tax reduction for 6, 9 or even 12 years in certain cases.
INVEST IN AN SME
Another solution to pay less tax is to invest in an SME (small to medium enterprise). This type of investment enables you to benefit from a reduction of 18% on income tax, within the limit of 50,000€ for a single person and 100,000€ for a married couple or partners that have undertaken a Pacs.
INVEST IN LOCAL INVESTMENT FUNDS (FIP) OR INNOVATIVE MUTUAL FUNDS (FCPI)
Have you already heard of Local investment funds (FIP) or Innovative mutual funds (FCPI)? These are very attractive investments that enable you to make the most of a reduction of 18% of the amount invested. The reduction is limited and cannot exceed 2160€ per person.
WHAT ABOUT A PENSION PLAN (PERP)?
If you are looking for a more traditional investment plan the PERP pension plan is right for you. The PERP is a very judicious investment: the sums that are deposited onto this investment plan are deductible from your income tax up to a limit of 10% of professional income or the annual limit set by the social security (PASS).
Don’t hesitate to contact your CA Britline advisor to look at the best investment solutions to suit your needs!