France: Reduced VAT on Social Housing in Urban Renewal Areas

• A 5.5% VAT rate applies to deliveries and self-supplies of housing built under a single sale/construction contract for owner-occupation as a main residence, provided the buyers meet income ceilings set by regulation.
• The reduced rate applies only if, at the construction permit filing date, the property is located in specified urban renewal or priority city policy areas, including within 300 meters of such areas, or in certain mixed perimeter zones meeting the legal distance criteria.
• The sale/construction price must not exceed the statutory ceilings applicable to regulated homeownership operations under the CGI.
• The regime covers both deliveries of buildings within the scope of the VAT rules and self-supplies of buildings defined by the CGI.
• A 10% VAT rate also applies to sales of building land intended for housing projects that qualify for the reduced-rate social homeownership regime.

Source: bofip.impots.gouv.fr

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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