⚠️ Scheme ended
The Censi-Bouvard scheme ended on December 31, 2022. It has no longer been possible to make new investments benefiting from this scheme since January 1, 2023.
If you invested before that date, you can continue to benefit from the tax advantages provided you comply with all the commitment conditions. For off-plan homes, completion had to occur no later than July 1, 2025.
Important: this document describes the scheme as it exists in the official texts and commentaries published in 2022. For later transactions, check the rules in force.
The essentials (2022 framework)
Investment period
01/01/2009 → 12/31/2022
According to the BOFiP, the benefit applies to purchases made up to December 31, 2022.
Rate (investments since 2013)
11%
The BOFiP states a rate set at 11% for investments made since January 1, 2013 (up to 12/31/2022).
Duration & spread
10 years
Reduction spread over 9 years, at a rate of 1/9 per year, with a commitment to rent to the operator.
Eligible homes and facilities (BOFiP 2022)
According to the BOFiP (version published on 06/27/2022), the homes must be located in one of the facilities below. Classified tourism residences are mentioned, with an exclusion as of 01/01/2017 (apart from transitional provisions).
| Facilities / residences | Eligibility for the scheme (2022 framework) | Notes |
|---|---|---|
| Facility housing elderly people | Yes | Social or medico-social facilities (CASF references cited in the BOFiP). |
| Facility housing disabled adults | Yes | Facilities defined by the CASF (references cited in the BOFiP). |
| Long-term care with accommodation | Yes | Facilities governed by the public health code (reference cited in the BOFiP). |
| Serviced residence for elderly / disabled people | Yes | Subject to "quality" approval or authorization conditions (references cited in the BOFiP). |
| Salaried family care (cooperation grouping) | Yes | Assigned to salaried family care (CASF references cited in the BOFiP). |
| Serviced residence for students | Yes | Explicitly mentioned as eligible in the BOFiP (2022). |
| Classified tourism residence | Excluded from 01/01/2017 (apart from transitional provisions) | The BOFiP provides transitional provisions for transactions committed no later than 12/31/2016. |
Main conditions (BOFiP 2022)
LMNP (BIC)
Rental income must be taxed as BIC (industrial and commercial profits — furnished rental carried out on a non-professional basis).
Lease to the operator
The owner commits to renting the home furnished to the operator of the facility or residence.
Minimum duration
Commitment to rent to the operator for a minimum of 10 years.
The BOFiP also specifies that, unlike some other schemes, the tax reduction is not subject to any zoning and that there is neither a rent cap nor an income cap for the occupant.
Official parameters (2022 framework)
The table below summarizes the parameters explicitly described in the BOFiP commentaries published in 2022.
| Parameter | Rule (2022) | Practical comment |
|---|---|---|
| Rate (investments since 01/01/2013) | 11% | Applied to the cost price retained (within the limit of the base). |
| Maximum annual base | €300,000 | Several homes are possible in the same year, but the overall base is capped at €300,000. |
| Spread over time | 10 years (1/9 per year) | Each year: offset of one ninth of the total amount. |
| Carry-forward if tax is insufficient | Up to and including the 6th year | If the annual fraction exceeds the tax due, the balance can be carried forward against income tax in subsequent years (oldest first). |
| First triggering event (examples) | Depending on the nature of the investment | Completed new build: year of purchase; off-plan (VEFA): year of completion; rehabilitation: specific rules (BOFiP table). |
Simple example: for an eligible investment (since 2013) retained on a base of €200,000, the total reduction is €22,000 (11%), offset at roughly €2,444 per year over 10 years (excluding carry-forward).
VAT treatment (calculation base)
The 2022 BOFiP specifies that, for residences/facilities meeting the VAT taxation conditions (reference to Article 261 D, 4° of the CGI), VAT is generally excluded from the base of the tax reduction when it is, most often, recovered by the owner-landlord.
Key takeaway: the VAT question depends on the VAT regime applicable to the operation (VAT conditions, services, etc.). For a concrete case, have the VAT treatment (and therefore the reduction base) validated by your tax advisor / chartered accountant.
Non-combination and cap on tax benefits
Non-combination rules (BOFiP)
The BOFiP states combination exclusions, in particular with certain overseas buy-to-let schemes, and also specifies exclusivity with the reduction linked to rehabilitation works on classified tourism residences (subject to conditions).
Overall cap (tax shelters)
The BOFiP recalls the application of the overall cap on tax benefits (cap of €10,000).
Tip: if you combine several tax reductions/credits, ask for an overall simulation (€10,000 cap) to avoid surprises.
Practical FAQ
Can you invest in several homes in the same year?
Yes: the BOFiP specifies that several homes can qualify for the reduction in the same year, but the overall base retained is capped at €300,000 for a given tax year.
Does the reduction depend on zoning, a rent cap or an income cap?
The BOFiP states that the reduction is subject to no zoning, and that there is neither a rent cap nor an income cap for the occupant.
What happens if my annual fraction exceeds my tax?
The BOFiP provides for a carry-forward: the unused fraction can be offset against the tax of subsequent years, up to and including the 6th year (with the oldest fractions offset first).
Other investment solutions
Since January 1, 2023, the Censi-Bouvard scheme is no longer available for new investments. Other options can be considered for furnished buy-to-let investment:
Furnished rental
Non-professional furnished rental without a specific scheme: tax advantages, tax regimes, conditions and obligations.
LMP (serviced furnished rentals)
Professional furnished rental: definition, conditions, tax advantages, differences with LMNP, and obligations.
Unfurnished rental
Classic buy-to-let investment with property income.
Disclaimer
The information in this article comes from the official sources referenced in the "Official sources" section at the bottom of the page. Handee cannot be held liable for any errors, omissions or interpretations of the information presented.
If in doubt or for any question specific to your situation, we invite you to consult the official sources mentioned directly (BOFiP, Légifrance, etc.) or to contact a qualified professional (notary, chartered accountant, tax advisor).
As the Censi-Bouvard scheme ended on December 31, 2022, the information presented is of a historical nature. Investors who invested before that date must comply with their commitments and the completion deadlines to continue benefiting from the tax advantages. The tax treatment (VAT, BIC, non-combination, cap on tax shelters, triggering event, etc.) depends on the exact structure and your situation. To secure a real case, have it validated by a notary, tax advisor or chartered accountant. Only the official sources are authoritative.