The Intermediate Rental Housing (IRH) is a scheme designed to offer housing at intermediate rents between social housing and the traditional private rental market. It primarily targets households whose income is too high for social housing but insufficient to rent comfortably in the private sector, particularly in areas identified as “tense” or high-demand.
Main principles of IRH :
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Rent ceilings: Controlled rents.
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Income conditions: Tenants must adhere to annual income ceilings.
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Tax advantages for investors: VAT reduction, exemption from property tax for 20 years.
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Time commitment: Obligation to rent under specific conditions for a 15-year period.
To benefit from the IRH scheme, it's necessary to use a dedicated legal structure (SCI taxed at Corporate Tax (IS), SCI taxed at Personal Income Tax (IR), or Family SARL):
1. SCI at IR (Personal Income Tax) :
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Administrative simplicity: Transparent taxation, rental income taxed directly at the associates’ personal level.
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Estate benefits: Facilitated property transmission and succession optimization.
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Use of property deficits: Financial charges and renovation expenses deductible from personal taxable income.
2. SCI at IS (Corporate Tax) :
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Controlled taxation: Taxation at a reduced fixed IS rate (15% up to €42,500 profits, 25% beyond).
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Depreciation of real estate assets: Allows depreciation, thus reducing taxable results.
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Precise fiscal management: Choice in associates' remuneration methods (dividends, manager's remuneration).
3. Family SARL (Personal Income Tax) :
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Transparent taxation: Allows close family members to join with attractive personal taxation.
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Deduction of charges and loan interest: Optimizes personal taxation and debt structure.
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Facilitated estate transmission: Significant benefits for succession and family asset management.
Benefits of IRH :
For tenants:
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Easier access to new or recent housing.
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Attractive, controlled rents ensuring financial stability.
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Privileged locations near amenities (transport, schools, shops).
For investors:
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Favorable taxation.
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Medium to long-term asset appreciation.
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High rental demand ensuring investment profitability.
Why use a professional ?
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Mastery of regulatory and tax constraints for maximum optimization of the scheme’s advantages.
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Investment security through strategic and suitable property selection guidance.
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Time and efficiency gains through comprehensive administrative management and simplified rental processes (tenant selection, rent collection, tax management).
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Personalized advice tailored to your investment profile and your estate and tax goals.
Conclusion
The IRH scheme represents a genuine opportunity for both investors and tenants, combining attractive profitability and secure asset management. However, to fully and safely exploit all potentials offered by this scheme, the assistance of an experienced professional is essential. They will notably help structure your investment optimally (SCI IS, SCI IR, or Family SARL), enabling you to benefit from optimized taxation, simplified management, and efficient long-term wealth transmission.