What exactly is the Loi Scellier and how could it affect you and your future investment in property? Well the law was ‘invented' by the very French-sounding François Scellier and in a nutshell is a tax reduction opportunity which encourages the purchase and renting out of low energy-impact homes. Very roughly think Grenelle combined with leaseback.

The deal is that via an ‘Investissement Scellier' you can get quite a weighty tax reduction (from 22% and up to 32% if you opt for the Regime Scellier Social) and no matter what your tax bracket is. However there is a yearly threshold of 7,333 Euros, just in case you're reading, Mr. Abramovich. And what does el Gov. want from you in return? It wants you to buy a new property and then rent it out for a minimum of 9 years. Simples.

And much like the program encouraging us to give up our gas-guzzling, fume-emitting old cars the future is new energy-efficient properties. It makes sense on a practical level. Just so long as we don't all end up living in identical peach box houses with flat solar-panelled roofs. The very existence of my oldie worldie beamie cottage is probably an arrestable offence so I shall lay low and not be inviting François Scellier for either tea or crumpet. I don't think he'd like my rows of single-paned French doors and general lack of insulation. Come to think of it there are times when I don't.

But blondely-obviously you will need to be a French tax-payer to get French tax rebates. Some recent figures say that of the 650,000 odd (I don't just mean weird) expats living on the Côte d'Azur, only 250,000 are registered tax payers. Tut tut. I of course forgive all the innocent children. And my close friends.

Back to business. In order to qualify for the maximum 32% reduction on your rental income or on your home owner's tax (Taxe Fonciére) you must abide by the following: your tenant's income cannot be more than stipulated ceilings and nor can the amount of rent per square metre that you charge. If you can guarantee these two criteria then you will automatically qualify for a 30% tax reduction. Sucré. But there's more. Literally. You can then get an additional 1.66% tax reduction per year over the next six years bringing your tax reduction to a total of 32%. François Scellier must be scintillating company.

So who's eligible? (actually, if you do know, drop me a discrete line). Anyone who can or wants to do the following:

- Buy a new property (or a property you can renovate) for a maximum purchase price of 300,000 Euros.
- Buy or have bought your Scellier investment property between 1st January 2009 and the 31st December 2012.
- Agree to rent out your new property for a minimum of 9 years and within 12 months of its purchase or renovation. 
- Not allow a member of your fiscal household be the declared tenant.
- Ensure that the rent and the tenant's income remain under certain thresholds.
- Promise to only apply for one Scellier rebate per fiscal year.
- Be a declared French tax payer.

To sum up, the Loi Scellier appears to be a clever way of guaranteeing the construction of lots of low rent French housing. Paid for by you. And under the guise of 'environmentally more friendly'. But it also means the government doesn't have to waste its own money on creating housing for its own people. The more foreigners qualifying for the Scellier Law the better, François et Nicolas? I should possibly be a little less cynical and point out that new housing scheme will hopefully make a significant impact on France's energy consumption while offering generous tax breaks. But let's just hope it won't be a case of Welcome to Ugly World. To be seen.

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