The Borloo Law allows you to acquire a new property at a reduced price thanks to the tax economy.

You will become the owner of a property which will be rented for a minimum of 9 years. Guaranteed rentals and tax savings realized under the Borloo Law will pay back over 75% of the mortgage.

Borloo Tax Exemption Law

1. Clause definition of Borloo Law :

Private individuals who acquire new accommodations, accommodations currently under construction or old homes for renovation and intended to be used for rental purposes may deduct as mortgage redemption 65% of their investment over a period of 15 years from their property revenues, as follows:

• 6 % for the first 7 years
• 4 % for the following 2 years

At the end of the obligatory rental period of 9 years, the owner may benefit from an additional deduction of 2.50 % of the purchasing cost of the property, by 3-year periods and for no longer than 6 years.

This arrangement applies to investments realized from September 2006.

Investments before this date remain subject to preceding rules (classic Robien).

Individuals who subscribe to investment property capital of civil companies (SCPI) may also benefit from this arrangement if 95% of their subscriptions are used for investments which fulfill deduction conditions for new-home mortgages for subscriptions realized from September 1, 2006.

This arrangement applies only to buyers who undertake: 

• to rent their property “as is” for 9 years, as a main residence,
• to respect maximum rental prices fixed by decree in the new Borloo law,
• that the tenant’s revenues are not more than the maximum fixed by decree.

2. Advantages of investments under the new Borloo law, in the intermediary sector:

If the owner opts for the "New Borloo" arrangement, he will benefit from the following advantages:

• Deduction of the investment sum plus purchase costs, as a mortgage for up to 65% of this sum over 15 years (6 % the first 7 years, 4 % the next 2 years, then 2.50% for a maximum of 6 years),
• Specific deduction of 30% of the total of gross income (during the rental obligation period), over and above deduction of real costs,
• The option of prolonging the rental obligation and thereby benefiting from extra deductions as part of the mortgage,
• The option of realizing the investment through an intermediary company which is not liable for company taxes (SCI),
• The option of realizing the investment through the intermediary of a SPCI,
• Property deficit attributed to global income, to a limit of €10,700 per year,
• Non-attributed property deficit carried forward for the following ten years,
• Management can be delegated to a property management company,
• Constitution of an income-producing property which can be handed down to your heirs.