What are the tax benefits associated with certain investments?

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Investing is not limited to simply seeking financial returns. Many investments offer significant tax advantages, allowing investors to optimize their taxes while building assets. Depending on each person's objectives, it is possible to choose suitable schemes that reduce income tax, exempt part of the gains or even deduct certain amounts invested from taxes.

Life insurance: a powerful tax optimization tool

Life insurance is one of the favorite investments of the French because of its flexibility and advantageous tax system. After eight years of ownership, the gains are taxed at a reduced rate and benefit from an annual allowance of €4,600 for a single person and €9,200 for a couple. In addition, in the event of inheritance, the capital transferred is tax-exempt up to €152,500 per beneficiary .

The retirement savings plan (PER): immediate tax deductions

The Retirement Savings Plan (PER) allows you to prepare for your retirement while reducing your income tax. The amounts paid into a PER are deductible from taxable income, within the limit of a ceiling set by law. Upon exit, the gains are taxed, but this tax system remains attractive for those who expect their income to drop in retirement.

Real estate investment: tax reduction schemes

Real estate offers many tax exemption levers:

• The Pinel system allows a tax reduction of up to 21% of the amount invested , provided that the property is rented for a minimum period.
• The LMNP (Non-Professional Furnished Rental) status offers a flat-rate reduction or the possibility of depreciating the property and thus reducing the taxable base.
• The Malraux system allows for tax exemption on part of the renovation work on properties located in protected areas.

Real Estate Investment Companies (SCPI) tax

Some SCPIs, such as Pinel or Malraux SCPIs, offer tax reductions on the same principle as direct real estate investment, with the advantage of pooling the risk and accessing real estate with a lower entry ticket.

Investments in companies: Private Equity and PEA

Investing in businesses can also offer tax benefits:

• The Share Savings Plan (PEA) allows for tax exemption on capital gains and dividends after 5 years of holding , while being subject to social security contributions.
• The IR-PME system (ex-Madelin) allows you to deduct up to 25% of the sums invested in SMEs from your income tax.

Tax niches and specific investments

Other investments offer tax reductions:

• FIP (Proximity Investment Funds) and FCPI (Common Investment Funds in Innovation) allow a tax reduction of 18% to 25% of the amounts invested.
• Investing in the French overseas departments and territories via the Girardin law offers an immediate tax reduction on industrial or real estate investments.

Conclusion

Optimizing your taxes through investments is a relevant strategy to combine profitability and tax advantages. Each system has its own constraints and conditions, it is essential to adapt your choices to your personal and financial situation. Whether through life insurance, real estate, PER or PEA, many solutions exist to reduce the tax burden while building lasting assets.