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Translation of an article written and signed in French by Sandy MASCART, for information. Only the French version is authoritative. Read the French page

Assistance schemes, PTZ and local schemes

Reduced VAT for new-build purchases in Lyon and Villeurbanne: conditions, neighbourhoods, resale

Reduced VAT on new builds in Lyon and Villeurbanne: neighbourhoods and surrounding band, income and price ceilings, principal residence, resale.

In Lyon and Villeurbanne, a new-build property may be sold with reduced VAT if it is located in a priority neighbourhood of urban policy covered by a city contract, or in the band that the law draws around it, and if the buyer makes it their principal residence, subject to income and price ceilings. A portion of the benefit must be repaid in the event of resale or rental before the statutory term.

By , mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)

Updated on Published on 6 min read

A rendered detached house with an arcaded porch, a terrace and a wrought-iron balcony, behind a hedge and a conifer.

Key points

  • The reduced rate is subject to four cumulative conditions: the address, the income, the price and the use as a principal residence.
  • The address is determined as at the date of submission of the planning permission application, within the neighbourhood or within the band measured from its boundary.
  • From 21 February 2026, the income ceilings are those of shared-equity housing, assessed at the signing of the reservation contract.
  • Reselling or renting out before the term set by law requires the repayment of a portion of the benefit, save for events accepted by the administration.
  • The articles of the code governing this regime are repealed on 1 January 2027: the rule must be re-verified for any project that spans this date.

In certain districts of Lyon and Villeurbanne, and in the surrounding areas, a new home is sold with a reduced VAT rate: the price falls, and so does the amount to be borrowed. Please verify the four conditions, the district of the development, and the cost of a quick resale. This is one of the local aids and schemes, including the PTZ.

What is reduced VAT in new builds, and who sets it?

The law: Article 278 sexies of the General Tax Code, for a new principal residence, subject to income limits, located in or near a district covered by urban policy.

Taux réduit de TVA de l'accession sociale à la propriété
5,50 %

Taux de la France métropolitaine, lu dans la doctrine fiscale ; le tableau du code général des impôts qui suit l'article 278 sexies porte le même taux à sa ligne « Accession sociale à la propriété ».

En vigueur depuis le
Source
BOFiP

Otherwise, the standard rate applies: 20,00 % (). See also shared ownership and the real leasehold in Lyon.

Date to remember: the ordinance of 17 December 2025 repeals these articles of the Code on 1 January 2027. Beyond that date, please have the rule confirmed by the notary.

What conditions must be met to benefit from it?

Four, cumulative: address, income, price, and principal residence. If even one is missing, the standard rate applies.

Condition What the text says When it is assessed Where it is recorded
Address District covered by an urban renewal agreement, priority district covered by a city contract, or band around their boundary On the date of submission of the building permit application In the sale deed, which specifies the location of the property
Income Limits set for shared ownership At the signing of the preliminary contract or the reservation contract; failing that, the sale contract Declaration by the buyer in the deed
Price Price limit set for shared ownership At the sale Price in the deed
Use Principal residence of the buyer, a natural person At the deed, then during the period set by law Declaration by the buyer in the deed

An increase in income after signing does not affect the rate.

In Lyon and Villeurbanne, which neighbourhoods qualify for the reduced rate?

The priority neighbourhoods of the “Lyon métropole” city contract, those undergoing urban renewal, and a surrounding band. Please verify address by address.

The priority neighbourhoods of 2024 according to sig.ville.gouv.fr, as at 1 October 2026:

Commune or arrondissement Priority neighbourhoods named in the sheet
Lyon 3rd Moncey
Lyon 5th Sœurs Janin
Lyon 7th Cités Sociales Gerland
Lyon 8th États-Unis - Langlet Santy, Laennec, Mermoz, Moulin à Vent
Lyon 9th Duchère, Gorge de Loup - La Vallonière, Le Vergoin
Lyon 1st, 2nd, 4th and 6th No priority neighbourhood named
Villeurbanne Bel Air - Les Brosses, Les Buers, Monod - Baratin - Cacard, Saint-Jean, Tonkin
  1. Locate the address, not the name of the neighbourhood, using the tool on the same site.
  2. The band is measured from the boundary of the neighbourhood.
  3. The date of the building permit counts, not your signature: the map changed in 2024: an earlier permit is judged on the old map.
  4. A neighbourhood removed from the map may still count, under an urban renewal convention, for permits submitted by 31 December 2026 at the latest.

Please request in writing from the developer the neighbourhood and the date of submission of the permit.

What resource ceiling applies from 2026?

From 21 February 2026, that of shared ownership, assessed at the signature of the reservation contract.

The price must also remain below the shared ownership ceiling. The tax authority website still describes the old rule: a simulator built on it is outdated.

Ask the developer which ceiling it applies, which year of income it retains and on what date your resources are fixed. The other aids: what the Zone A change means in Lyon, the Metropolitan aid reference framework.

What the reduced VAT changes in your financing plan

The bank finances the price written in the contract: if the reduced rate drops, the plan changes with the price.

What happens if you sell or rent the property too early?

During the legal period, you repay the VAT difference, reduced by year of ownership, except for life events.

No top-up in case of death, professional mobility or unemployment beyond a threshold, disability, divorce, marriage or civil partnership, birth. Renting also ends the regime. Set your horizon before buying.

Five checks before signing the reservation contract

  1. The address and the date of the planning permission application, in writing.
  2. The income ceiling and the income taken into account.
  3. The price and the VAT rate, and the fate of the price in the event of refusal.
  4. Your intended period of occupation.
  5. The timeline in the event of withdrawal.

The notary and the tax office confirm the reduced rate. Sandy MASCART, mandate holder for an intermediary in banking operations and payment services registered with ORIAS (No. 26000541), builds the financing plan based on the contract price and submits the file to the lenders, who decide alone.

Reservation contract in hand? Create your file or have the financing plan checked by telephone.

Sources

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Your loan and your purchase

Mandatory legal information, in French:

L’emprunteur dispose d’un délai de réflexion de dix jours ; la vente est subordonnée à l’obtention du prêt ; si le prêt n’est pas obtenu, le vendeur doit rembourser les sommes versées.

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