The 244 quater W scheme is a French tax measure designed to encourage rental investment in the overseas real estate sector. Taxpayers who invest in overseas France via a company benefit from a tax credit. The scheme runs until 2029.
This scheme is aimed at companies operating in the French overseas departments and acquiring one or more new housing units located in these departments. The investment must be made with a view to letting the property as a principal residence for a minimum period of 5 years.
One of the main advantages offered by the 244 quater W scheme is the tax credit rate, which is set at 35% for companies and organizations subject to corporate income tax. It is granted for the year in which the investment is commissioned.
However, to benefit from this tax reduction, the scheme requires compliance with certain strict conditions. In addition to the minimum rental period, the property must be let within a maximum of twelve months of completion or acquisition. In addition, the rent charged must comply with ceilings set by decree, depending on the property's location and the tenant's income.
The 244 quater W scheme was designed to encourage private investment in the rental sector, thereby helping to solve the housing crisis and boost the property market. By encouraging investors to direct their funds towards the construction of housing in areas with high housing demand, the scheme aims to meet the growing demand for affordable housing.
