What tax exemption strategy for 10,000 euros of income?
With 10,000 euros in monthly income, you are part of the richest 1% of French people. Most often senior with income from your work but also heritage income (dividends, rental investment), you are also among the people who pay the most tax.
So how do you pay less tax when you have 10,000 euros in income? There is not just one strategy, but several, most of which can be combined. You can pick from this file the tax exemption solutions that best suit your profile.
Reduce tax through savings
Some savings schemes allow you to reduce your taxes while preparing a project. Do not hesitate to carry out a heritage assessment and to be accompanied by a financial adviser before choosing your investment.
Have the life insurance reflex to prepare for the future
At the top of the favorite investments of the French, life insurance allows you to save while obtaining tax-exempt income from assets. In addition, it is useful for preparing your estate, providing you with additional retirement income or keeping your money available when needed.
An essential investment, life insurance does not initially allow you to reduce tax, but helps you prepare for the future. If you have a risk appetite, the PEA (Action Savings Plan) is an alternative of choice for investing in the stock markets.
The PER to reduce taxable income
The PER (Retirement Savings Plan) is an excellent savings product that allows you to reduce tax while preparing for your retirement. Indeed, the sums paid into your PER are purely and simply deductible from your taxable income, within the limit of a certain ceiling depending in particular on your income.
Thus, 3,000 euros paid into a PER is 3,000 euros less taxed, i.e. 1,230 euros in tax savings if you are in the marginal tax bracket at 41%, common for high incomes of 10,000 euros or more.
The savings thus constituted can be released when you retire, in the form of an annuity or capital. However, cases of early release exist in the event of a hard blow (death of the spouse, end of entitlement to unemployment benefits, judicial liquidation, etc.).
The Madelin contract for TNS
If you are self-employed, TNS (non-salaried worker), craftsman, merchant or liberal profession, the Madelin contract offers you attractive tax advantages. In particular, you will be able to deduct the contributions paid from your taxable income within the limits of certain ceilings, and take out your savings as an annuity.
We will not dwell on the Madelin system, which ended on October 1, 2020, like the PERP and the PERCO, in favor of the PER mentioned above and accessible to all savers, through a contract. individual or collective. Note that the PER offers more flexibility, including for self-employed workers.
While specialized savings products offer an almost unavoidable tax exemption system, other investments are possible to complete your tax reduction.
Tax exemption through real estate
In order to combine the investment in the stone with the tax reduction, the simple rental investment is no longer enough, since it adds property income to your income from work. To overcome this drawback, real estate tax exemption is ideal.
The LMNP to avoid tax on rental income
Like life insurance for savings, the status of LMNP (Non-Professional Furnished Renter) does not allow you to directly reduce the amount of your income tax, but avoids you having to pay it. while investing in real estate.
The LMNP consists of the purchase of a property of your choice with a view to its furnished rental. The accommodation must therefore be “ready to use” so that your tenant only has to put down his suitcases.
The real regime allows you to deduct all charges and depreciation from your land income, while the flat rate regime allows you to deduct half of the rents collected from your land income. Both provide significant savings while diversifying your wealth.
The Pinel law and the Denormandie law to reduce taxable income
The best known tax system, the Pinel law allows you to invest in a new real estate program in a coveted sector. The aim here is to ease tensions in areas where housing demand is high. For the taxpayer, it is a key tax saving for a rental commitment.
The Denormandie law, meanwhile, is a lesser known but equally interesting device, a direct extension of the Pinel law. Here, it is a question of investing in old real estate to repopulate certain abandoned areas due, in particular, to the dilapidated state of the building. You benefit from tax savings equivalent to the Pinel law for a generally less expensive financial investment.
The Pinel and Denormandie laws are a powerful and attractive tax exemption system. But it is advisable to choose your investment carefully, to avoid overvalued real estate programs or even old housing in a geographical area in decline.
To the most well-known real estate tax exemption systems, an investment in companies can be added to considerably reduce the amount of your tax.
Tax exemption through investment in companies
A powerful tax exemption lever, investment in companies aims to revive or promote the economy in certain territories. It offers a quick tax reduction, but the risk of loss is real and must be well measured.
Industrial Girardin law
It aims to encourage industrial development in Overseas France by investing in SNCs (Société en Nom Collectif) set up to help overseas companies acquire new equipment to develop.
It promises an attractive and “one shot” tax reduction. You invest 10,000 euros and receive the following year a tax reduction amounting on average to 15% of your investment, or 1,500 euros in our example.
However, the operation must be set up with care in order to avoid the risk of tax adjustment by the administration. The SNC is only dissolved after 5 years and the DROM-COM operator must still be active.
This type of arrangement requires going through a trusted intermediary. This must offer real support for the tax arrangement of the file, pool the risks by spreading them over several companies deemed to be solid, and have an effective presence in the fie
Investment in SMEs and SMIs
Overall, investment in SMEs and SMIs aims to help the development of a company with fewer than 250 employees, young and promising. The investment can be direct (capital contribution) or indirect (through FIP and FCPI).
In return, the taxpayer benefits from a tax reduction of 18% on his investment. But, even more than with the Girardin law, the risk of loss is high and the entry fees are to be studied closely. Indeed, in the event of bankruptcy of the company, you will have obtained a tax reduction but will have lost your capital.
In an economic context marked by the health and economic crisis, it is more than ever wise to be accompanied by a heritage expert. An in-depth study of your needs and your situation will allow you to reduce tax while limiting the risks as much as possible.