What is the "Pinel" Investment Scheme?
The Pinel investment scheme, implemented on January 1, 2015, offers an income tax reduction for the acquisition or construction of a property.
The scheme has been extended until December 31, 2024. This investment incentive provides a tax reduction for acquiring or constructing a new property in exchange for renting it as an unfurnished principal residence at a rate below market prices for a minimum of six years. This rental commitment can be extended optionally to nine or twelve years.
Pinel Scheme Simulator
The simulator allows you to:
- Check if your municipality is eligible for the scheme
- Calculate the rent cap for leasing your property
- Know the maximum income threshold for potential tenants
- Estimate the amount of tax reduction you may receive
Objectives of the Pinel Scheme
The Pinel scheme addresses three main goals:
- Building housing in high-demand areas
- Supporting rental investment
- Creating an intermediate rental housing market, more affordable than the private rental market but more accessible than social housing, helping families unable to access social housing and struggling with private rental prices
How Does the Pinel Scheme Work?
If an investor purchases or builds a new property or one under construction between September 1, 2014, and December 31, 2024, they can benefit from a staggered income tax reduction over six, nine, or twelve years, amounting to 12%, 18%, or 21% of the purchase price (23%, 29%, or 32% in overseas departments and territories), based on the chosen term, with a maximum of €300,000 and a cap of €5,500 per square meter.
To qualify for the tax reduction:
- The property must be rented out for at least six, nine, or twelve years
- The property is in a high-demand area (Zones A, Abis, and B1) or a town covered by a defense site revitalization contract since January 1, 2018
- The rent respects a rent cap based on the area, typically about 20% below market rates
- The tenant’s income does not exceed a specified ceiling
- The tenant can be a direct relative (parent or child) of the property owner, provided they are not part of the owner’s tax household
- The property meets a minimum level of overall energy performance
Important: Each investor is limited to acquiring a maximum of two properties per year under this scheme, with a total investment cap of €300,000 per year. The tax reduction from this scheme is part of the overall cap on tax benefits, limited to €10,000.
Scheme Evolution: "Pinel +"
Article 168 of the 2021 Finance Law extended the Pinel scheme until December 31, 2024.
From 2023 and 2024, the scheme has evolved. To receive the full tax reduction rates (known as "Pinel +"), properties must meet higher quality standards, especially in terms of energy and environmental performance.
Decree no. 2022-384 of March 17, 2022, stipulates that properties in mainland France must generally comply with the building environmental regulations (RE2020) that will come into effect in 2025. For properties acquired in 2024, an additional requirement is that they must fall within energy performance class A.
Additionally, properties acquired in 2023 and 2024 must meet the following usage and comfort criteria:
- A minimum floor area per property type (e.g., 45 square meters for a two-room apartment)
- Private outdoor spaces meeting minimum size requirements (e.g., 3 square meters for a two-room apartment)
- Dual orientation for three-room properties and larger
If properties do not meet the "Pinel +" criteria specified in the decree, tax reduction rates are lower:
- In mainland France:
- For properties acquired in 2023: 10.5% (6 years of rental), 15% (9 years), and 17.5% (12 years)
- For properties acquired in 2024: 9% (6 years), 12% (9 years), and 14% (12 years)
- In overseas departments and territories:
- For properties acquired in 2023: 21.5% (6 years), 26% (9 years), and 28.5% (12 years)
- For properties acquired in 2024: 20% (6 years), 23% (9 years), and 25% (12 years)