Why invest in a parking lot?

February 26, 2020

Investing in real estate is one of the most profitable investments over the long term. The parking lots you own are rental income and represent for you what is known as property income. It is possible to exempt your property from tax, which would allow you to benefit from a tax reduction. Otherwise, your parking lot may be subject to the real or micro property regime within the framework of income tax (IR).  Find out in this article how investing in a parking lot can help you reduce your parking tax.

Tax relief

Why invest in a parking lot when you want to start renting real estate? There are many advantages to acquiring a parking lot and then renting it out. First of all, since parking lots generally require less maintenance and expense than other real estates, fewer inspections are needed to decide on a purchase and close the deal. The old adage about the three most important aspects of real estate being location, location and location is even more true for parking lots. Location is absolutely the number one criteria for a parking lot investment. Also, you will benefit from tax relief for your parking lot. There are two regimes for this: the micro-financial regime and the real regime. 

The micro-foncier scheme

The micro-foncier scheme will allow you to have a lump-sum deduction of 30% of your income if it is less than 15,000€/year. This means that you will be taxed on only 70% of the income you receive each year. 

The real regime

The real regime allows you to withdraw the charges deductible from your taxes. You will be able to use this scheme if, contrary to what we explained previously, your income is higher than 15,000€/year. When we talk about deductible charges, we take into account management fees or parking lot maintenance costs.  

 

A tax exemption for your parking lot

Several laws have been put in place in order to finance a property using your taxes. Since 2014 in particular, we have been focusing on the Pinel Law, which is a law based on Duflot's ideas. This legislation allows lessors to benefit from many advantages. 

A tax rebate is granted and there are different ceilings: if a tenant is there for 6 years, there will be a tax reduction of 12%, if he rents for 9 years, the reduction will be 18% and if he is there for 12 years or more, it will be 21%. This law also grants the right to rent his property to a member of his family and also allows lessors to ensure a proper retirement because at the end of the property rental, they receive a capital gain

You also may be interested in this article : 

Investing in a parking lot: new profitable source of income or not ?

Don't wait any longer to make one of the most profitable investments: the parking lot. You will see your taxes decrease and it will become profitable very quickly. We guarantee you that it is the least restrictive and most beneficial property

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