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Life insurance contributions exceeded 150 billion euros in 2021, a historic record. Property ads will include new information from April 1, 2022. Inflation continued to rise in January 2022. Owners of furnished accommodation will have more time to decide under which tax regime to declare their rental income. The fees for retirement savings plans and life insurance contracts will be more clearly detailed from June 1, 2022. The health questionnaire will be abolished for the granting of home loans of less than 200,000 euros. General meetings of co-ownership can again be held remotely until July 31, 2022.
Summary:
- Life insurance broke records in 2021
- Real estate ads: towards more transparency
- Inflation continues to rise in January 2022
- Furnished rentals: more time to choose how to declare income
- PER and life insurance: increased transparency on costs
- Real estate: removal of the health questionnaire for certain loans
- Co-ownership: AGs can once again keep themselves at a distance
Life insurance broke records in 2021
Life insurance contributions reached 14.4 billion euros in December 2021, the highest for more than 10 years, and they exceeded 150 billion euros for the whole of 2021, a record history, according to figures published by France Assureurs. Net inflows rose to +23.7 billion euros in 2021, a level not seen since 2010. For unit-linked units, both contributions (58.5 billion euros) and net inflows (34.7 billion euros) reached historic levels in 2021. At the end of December 2021, outstanding life insurance contracts amounted to 1.876 billion euros, up 4.4% year-on-year .
Real estate ads: towards more transparency
From April 1, 2022, real estate ads will have to include two new pieces of information. For properties located in areas subject to rent control, advertisements must indicate the maximum possible rent given the regulations. In addition, real estate agencies will have to mention their maximum rates. “It will therefore be possible for them to lower the price of their service for sale or rental, or even property management”, underlines the Ministry of Economy, Finance and Recovery. This transparency measure aims to fight “against abusive pricing practices in tight areas where rents are regulated”, declared the Minister of the Economy Bruno Le Maire.
Inflation continues to rise in January 2022
Inflation stood at 2.9% over one year in January 2022, against 2.8% over one year in December 2021, according to estimates by the National Institute of Statistics Insee. “This rise in inflation would result from an acceleration in the prices of energy, services and – to a lesser extent – food”, explains INSEE. The government has taken several measures to compensate for this rise in consumer prices, including an “inflation allowance” of 100 euros for those earning less than 2,000 euros net per month. The private sector employees, the self-employed and the jobseekers concerned have already received it and eligible retirees will receive it in February 2022.
Furnished rentals: more time to choose how to declare income
Owners of furnished accommodation are automatically subject to a flat tax system, known as industrial and commercial micro-benefits (micro-BIC), if their rental income does not exceed 72,600 euros. This scheme offers a 50% reduction on the rents collected. However, lessors can opt for the actual regime if they believe that their expenses exceed the amount of the exemption. This choice can now be made until the deadline for filing the income tax return, at the end of the spring. Previously, lessors had to exercise this option before February 1 of each year.
PER and life insurance: increased transparency on costs
From June 1, 2022, each producer of a retirement savings plan (PER) or life insurance will put a table online containing the costs attached to each contract. “The marketplace agreement on transparency and clarity of costs will further enhance the attractiveness of life insurance and retirement savings plans,” said Franck Le Vallois, CEO of France Assureurs. From July 1, 2022, the total costs borne by each unit of account or each asset must be displayed in the pre-contractual information, then in the annual information provided to the saver from 2023.
Real estate: removal of the health questionnaire for certain loans
The medical questionnaire requested as part of a home loan will be removed for loans below 200,000 euros, according to the compromise reached between senators and deputies, during the joint committee on the bill “Borrower insurance”. In addition, this compromise provides for the reduction from ten to five years of the period of the right to be forgotten for cancerous pathologies and hepatitis C and a right to terminate borrower insurance contracts at any time. Currently, it is possible to terminate your borrower insurance during the first year by sending a registered letter to your insurer no later than 15 days before the anniversary date of the contract.
Co-ownership: AGs can once again keep themselves at a distance
General meetings of co-ownership can again be held remotely, until July 31, 2022, but they are now better supervised to avoid abuse. According to the law strengthening the tools for managing the health crisis, published in Official newspaper on January 23, 2022, if a trustee wishes to cancel a physical general meeting to organize it remotely, he must seize the union council and take its opinion. In addition, a syndic must justify the use of postal voting and prove that the material or technical conditions prevent the use of a videoconference or an audioconference. No additional fees may be applied in the event of a postal vote.
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