Understanding the Pinel Device

The Pinel Act is a measure put in place by Minister Sylvia Pinel, who succeeded Cécile Duflot as Minister of Housing.
The Pinel device allows you to achieve different objectives (reduce taxes, build a portfolio, invest without contribution,Preparing for retirement or protecting others) while supporting the government's objectives.

Pinel: the new tax system that allows you to reduce your taxes by benefiting from the advantages of a Pinel property

The Loi Pinel device therefore replaces the Duflot device with the aim of improving it and making the conditions all the more advantageous For the French taxpayer wishing to invest. The government's goal is to develop private sector financing in the Of the real estate in order to boost the sector while increasing the supply of housing to rent in the market.

The Pinel Device: Up to 21% Tax Reduction

The old arrangements (Scellier, Duflot) offered only a 13% or 18% tax reduction. The Pinel device goes further and Offers a reduction of up to 21% of the investment amount. Either, with the Pinel Act, a tax reduction Reaching the sum of 63 000 €.
In addition, the Pinel device introduces the possibility of renting its property to its relatives, ascendants or descendants. To qualify for the tax reduction, the investor must acquire new property and lease it for a specified period of time: 6, 9 or 12 years. The tax reduction is therefore proportional to the duration of commitment: 12, 18 or 21%. All property acquired under the Pinel Act from 1 September 2014 is eligible for tax exemption, according to the principle of retroactivity. A Except for the application of the ascending / descending measure, valid only from 1/01/2015.

Pinel device conditions

Accommodation

Housing, to be eligible for the Pinel device, must respect the following conditions:

Rental:

Property acquired through the Pinel device must be leased under the following conditions:

Investment:

The financial conditions specific to the Pinel device for investing in the new one are as follows:

Areas and ceilings of the Pinel Law

Zones Pinel

The Pinel zones are the areas that determine the eligibility of a program for tax reduction. These areas are divided into categories:

See our section Pinel area to see the full map of the Pinel zoning.

Pinel ceilings

The individual who invests through the device must respect various Pinel ceilings: the ceiling of the rents and the ceiling of tenants.

Rent ceiling

The first ceiling delimits the maximum amount at which the property can be leased. It depends on the surface of the latter and the area in Which it is located. This ceiling is put in place to regulate market prices and ensure easier access to the lease.

Tenant Resource Cap

The second limit defines the maximum income that tenants of a Pinel property can have. This decision makes it possible to Priority access to modest homes. This ceiling depends on the composition of the fireplace but also on the area in which the property is located.