Single: how to pay less taxes?
In France, single people often have the impression of being taxed more than other taxpayers, especially couples. In reality, it is not just an impression. A single person with a good income, who declares his taxes alone will invariably be taxed more than a person benefiting from the same income, but who declares his taxes with a spouse who earns less since the taxable income of the couple is reduced. Although this is not an injustice in itself, no one is against paying less tax. As singles, you have a few tricks to get there.
Invest in real estate
Whether you are single or not, real estate investment is an effective means of tax exemption. Indeed, to encourage investment in the field and increase the supply of housing in areas where it is sorely lacking, the French government has implemented a number of property tax exemption schemes. Thus, any taxpayer making an investment in non-professional rental will be entitled to a flat-rate allowance of half of the rents received. As part of the Pinel system, a tax reduction of 12 to 21% of the sums invested is possible under certain conditions. With the Censi-Bouvard system, renting accommodation with services for retirees or students allows you to reduce your taxes by 11% of the amount of funds invested.
Make investments in companies
Like investing in real estate, investing in a business can also lower your taxes when you’re single. The planned tax reduction is 18% of the sums invested, however certain conditions must be met. The company concerned must be housed in France and must be subject to corporation tax. This initiative aims to encourage taxpayers to support structures that actively participate in the national economy and at the same time create jobs. The tax reduction can even go up to 25% if the investment goes directly to the share capital of an SME. However, there is an investment ceiling that must be respected: it is 50,000 euros. Of course, you have the possibility to invest more than this amount, but the additional amount will not be taken into account when calculating the tax reduction.
Make donations or patronage
Donating to public utility associations or general interest organizations entitles you to a tax reduction corresponding to 66% of the funds granted. The only condition to benefit from this tax exemption is to ensure that the donation does not exceed 20% of your taxable income. It is even possible to benefit from a reduction of 75% of the funds allocated if the donation is sent to an association helping people in difficulty. In addition, sponsorship is also likely to allow you to benefit from a tax reduction, even if this is not always within the reach of all single people. Generally, it is the professionals justifying a taxable turnover who lend themselves to it. In this case, the tax reduction is 60% of the funds made available to the company or craftsman of your choice.
Build up savings
If you are an employee and you receive target bonuses or profit-sharing bonuses, you can immediately place them in an employee savings account and thus deduct them from your taxable income. The idea is to avoid collecting these sums to avoid declaring them. Putting money into a popular retirement savings plan will also allow you to deduct part of your income from your taxes. Note, however, that you will not be able to access the funds saved before retirement.