Overseas housing tax incentive refocused on social housing and home ownership

Article 38 of the law on the economic development of the overseas territories reforms the income tax reduction of Article 199 undecies A of the General Tax Code: the benefit for buying a main residence is limited to first-time buyers and occupants of unfit housing, a floor-area limit is introduced, and investments in private and intermediate rental housing (b, c and d of paragraph 2) no longer qualify if committed after 31 December 2010, apart from reduced transitional rates in 2011 and 2012. It creates Article 199 undecies C, a tax reduction of 50% of the capped cost price for new homes let to social housing bodies and sublet to households under income ceilings, applicable to purchases or constructions made until 31 December 2017, as well as a social housing component in Article 217 undecies for companies. Article 39 extends the 'Scellier' reduction to overseas homes at higher rates.