Robien law – who does it apply to?

The Robien law applies to investors in the middle and upper tax bands.

The main advantages of the Robien law

The Robien law enables buyers to deduct 50% of a rental property acquisition price from their taxable income.

How the Robien law works

To take advantage of the Robien law, all you have to do is buy one or more properties and then rent it/them unfurnished as a principle residence for a minimum of 9 years. It is then possible to deduct 50% of the property investment from your taxable income.

6% per year for the first 7 years

4% per year for the following 2 years

You can also deduct the related expenses (e.g. costs relating to management, insurance, rental insurance and property tax) and all of the interest and borrowing fees incurred during the reimbursement period, hence the benefit of taking out a loan to maximise your tax exemptions.

In this way, it is possible to create a ‘déficit foncier’ (loss on property) of up to €10,700 per year. The balance will be deducted from the deficit over the next 10 years.