Reduction of French VAT for renovation works

If you hire a professional for housing renovation works you can benefit, under specific conditions, from a reduced VAT rate of 5.5%, instead of 19.6%.
The 5.5% rate is only meant for improvement, transformation, fitting and upkeep works in properties older than 2 years, either in main or second homes.
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Only works charged by registered building professionals are eligible.
If you buy products yourself and have them installed by professionals, these purchases will remain subjected to the normal rate of 19.6%, and only the company’s service will be subjected to the reduced rate.
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The 5.5% rate is ruled out for the following works:
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– New buildings
– Works raising the building’s height
– Structural works renovating more than 50% of the shell, that is to say any element determining the building’s resistance and solidity, such as the foundations, the roof structure or load-bearing walls
– Light works renovating more than 66% of the interior elements such as non-load bearing floors, dividing walls, sanitary installations, electric installations (and heating in urban areas)
– Works increasing the floors’ surface by more than 10%
– “Luxury” works such as swimming-pools, verandas, terraces, balconies or loggias
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However, for every lighter improvement work, this reduced VAT rate is a real opportunity to achieve much at undeniably less cost.
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For a selection of properties in all areas of France that need only a little work from smaller budgets to larger budgets, check out the Sextant French Properties website.