Reduced VAT for social housing: rent cap set by decree and income condition for home ownership
Article 95 of the 2026 Finance Act amends Article 278 sexies of the General Tax Code. Under I 7°, rents must not exceed a cap set by decree taking into account household size and location. Under III 2°, the reduced rate for homes sold for ownership requires that buyers be individuals whose income does not exceed the ceilings applicable to holders of the contracts referred to in III 1°.
Measure originators
No official estimate found for this measure.
Measure impact
For subsidised home ownership at the reduced VAT rate, the Government amendment behind the article aligns income ceilings in urban policy priority areas with those of the social lease-to-own loan and the solidarity real estate lease. Rents covered by I 7° are capped by decree.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
President of the Republic signature
Publication au Journal officiel