The government will put an end to the Pinel Law measures at the end of 2024.

This advantageous system allows individuals to benefit from a tax reduction in the event of acquiring housing that they wish to rent, and it also allows tenants to benefit from a limited rent lower than the real estate market of its sector.

However, the government must now make savings in order to finance its “housing plan” which aims to build new housing. Among these savings, the disappearance of Pinel and Pinel +, systems which will not be extended after December 31, 2024 as indicated by Prime Minister Elisabeth Borne.

Of course, those who have already subscribed to Pinel will benefit from the tax reduction until the end of its validity (6, 9 or 12 years). For this, the rents set in the housing in question must be 15% lower than the rest of the market.

It is the Bofip (official public finance bulletin) which reveals each year the new ceilings, which can be consulted for 2023 here.

How does this Pinel Law scheme works?

This rental investment system therefore allows owners who purchase a property (new or rehabilitated old) in order to rent it out for at least 6 years to claim an income tax reduction.

This concerns purchase transactions concluded between September 1, 2014 and December 31, 2024, for eligible properties, that is to say located in an area where the demand for housing is greater than the supply, and making part of a building such as a residence or building.

Houses therefore do not fall within the framework of the system except those for which the building permit application was submitted before January 1, 2021.

Since January 1, 2023, the criteria have changed and this has resulted in the reduction of the tax advantage intended for owners, which is currently 10.5% for a rental commitment over 6 years, 15% for 9 years and 17.5% for 12 years.

Pinel plus: something new to complete the Pinel Law in 2023?

Pinel plus (Pinel +) offers a more attractive tax advantage with a tax reduction of 21% for rental over 12 years. The criteria are, however, more strict – only new housing acquired in 2023 and 2024 is concerned, whose DPE label offers an A or a B, and guarantees energy performance superior to the regulations in force.

This accommodation must be located in a priority area of the municipality and must offer a terrace, balcony or garden. Its living space must be at least 28 m² for an 1-room apartment, 45 m² for a 2-room (1-bed) flat, 62 m² for a 3-room or 2-beds apartment.

Finally, from the 3-room apartment, the property must offer a minimum of two different orientations.

What are the conditions to benefit from the Pinel Law?

As said above, owners must agree to rent the property empty - and unfurnished - as part of a main residence, for a minimum of six years, at a rate lower by around 20%. at market price.

Housing eligible for Pinel Law in 2023

Indeed, to respond to a housing crisis in certain sectors, the property must be located in a real estate tension zone, i.e. zones A, A bis and B1.

We are therefore talking about: Paris, 76 municipalities of Yvelines, Hauts de-Seine, Seine-St-Denis, Val-de-Marne and Val-d'Oise, the Paris Agglomeration (including Abis zone), the Côte d'Azur, the French part of the Geneva metropolitan area, municipalities where rents and housing prices are very high such as Chamonix-Mont-Blanc, La Clusaz, Les Gets, Megève, or Morzine, as well as certain urban areas whose rents and housing prices are high, such as Saintes-Maries-de-la-Mer, Trouville-sur-Mer or Lecci.

The apartment must also respect a level of overall energy performance depending on the type of purchase.

Is there an income ceiling to benefit from Pinel Law in 2023?

No, not for owners. On the other hand, since the system is reserved for low-income households, the tenant's income must actually be lower than a ceiling, fixed according to the geographical area and the composition of the household.

For more information on the Pinel system, the Ministry of Territorial Cohesion has put a simulation tool online on its website: thus, the potential investor can check whether their municipality is eligible and can calculate the maximum rent at which he could rent his accommodation.

He will also know the income limit not to be exceeded for his future tenants, as well as an estimate of the amount of his tax reduction.

For more information, consult the website of the Ministry of Ecological Transition and Territorial Cohesion here