Selecting a language will automatically trigger the translation of the page content.

Pinel/Duflot Law: income tax reduction for rental investment

Verified 09 avril 2021 - Legal and Administrative Information Directorate (Prime Minister)

You receive a tax reduction if you have made rental investments. The characteristics of this reduction depend on the date you made this investment.

Since September 2014 (Pinel)

You benefit from a tax reduction if you are fiscally domiciled in France and have made rental real estate investments, subject to fulfilling conditions related to the tenant and the rental. The so-called tax reduction Pinel applies to investments made from September 2014.

Types of acquisitions

The tax credit applies to the following properties:

  • New Housing
  • Housing in future completion state
  • Housing you're building
  • Old housing being renovated (which represents at least 25% of the total cost of the operation).
  • Housing undergoing rehabilitation
  • Local converted into a dwelling.

  Warning : since 1to January 2021, the reduction applies only to units located in a collective building. It is no longer a matter of individual and cottage accommodation.

Housing completion times

Répondez aux questions successives et les réponses s’afficheront automatiquement

Housing in Future Completion State

The dwelling must be completed within 30 months of signing the authentic instrument of acquisition.

Housing to build

The housing must be completed within 30 months of the date of obtaining the building permit.

Housing under construction

The accommodation must be completed on 31 December of the 2e year after the acquisition of the dwelling or premises.

Investment period

The tax reduction applies to transactions between September 2014 and December 31, 2024.

  Warning : the tax reduction applies to a maximum of 2 units per year.

Location

The accommodation shall be in zone A, A bis or B1.

You can check your investment area with a simulator:

Investment made since 1 October 2014

Know the area of your town: A, Abis, B1, B2 or C

Directorate of Legal and Administrative Information (Dila) - Prime Minister

  FYI : since 1to April 2020, in Brittany, the Pinel reduction applies only to housing in specific areas defined by the prefect of the region.

Search for areas affected by the Pinel device in Brittany

Ministry of Environment

Investment made before October 2014

Energy performance

The housing must meet an overall energy performance level depending on the type of acquisition.

Energy performance based on acquisition type

Type of accommodation

Energy performance required

New or to be built

Thermal Regulation RT 2012

(or BBC 2005 label in case of building permits filed before 2013)

Requires work

HPE label renovation 2009

or BBC label renovation 2009

  Warning : overseas, different rules apply.

The tenant may be your child or parent provided that you do not belong to your tax centre.

Sound reference tax income shall not exceed the regulatory ceilings.

Metropole

Maximum Annual Resources (2019 Tax Reference Income) by Geographic Area - Lease entered into in 2021 - Metropolitan

Composition of the tax centre

Area A

Area A

Area B1

Area B2

Area C

Single

€38,377

€38,377

€31,280

€28,152

€28,152

Couple

€57,357

€57,357

€41,772

€37,594

€37,594

+ 1 dependant

€75,188

€68,946

€50,233

€45,210

€45,210

+ 2 dependants

€89,769

€82,586

€60,643

€54,579

€54,579

+ 3 dependants

€106,807

€97,766

€71,340

€64,206

€64,206

+ 4 dependants

€120,186

€110,017

€80,399

€72,359

€72,359

Increase per additional dependant

+ €13,390

+ €12,258

+ €8,969

+ €8,070

+ €8,070

Overseas

Maximum Annual Resources (2019 Tax Reference Income) by Geographic Area - Lease Completed in 2021 - Overseas

Composition of the tax centre

Department of Overseas (Dom)

Saint Martin

Saint Pierre and Miquelon

French Polynesia

New Caledonia

Wallis and Futuna

Single

€28,606

€28,606

€31,099

Couple

€38,202

€38,202

€41,528

+ 1 dependant

€45,941

€45,941

€49,941

+ 2 dependants

€55,461

€55,461

€60,290

+ 3 dependants

€65,241

€65,241

€70,923

+ 4 dependants

€73,527

€73,527

€79,928

Increase per additional dependant

+ €8,206

+ €8,206

+ €8,920

Know the area of your town: A, Abis, B1, B2 or C

Directorate of Legal and Administrative Information (Dila) - Prime Minister

The accommodation must be rented as main dwelling.

It must be leased no later than 1 year after the completion of the building or after its acquisition.

The minimum lease term is 6 years.

The monthly rent shall not exceed, excluding charges, the following ceilings:

Metropole

Monthly rent ceilings, per m², charges not included, for leases concluded in mainland France

Location

Monthly rent ceilings per m²

2020

2021

Area A

€17.43

€17.55

Area A

€12.95

€13.04

Area B1

€10.44

€10.44

Area B2 (on approval)

€9.07

€9.13

Overseas

Monthly rent ceilings, per m², charges not included, for leases concluded in mainland France

Location

Monthly rent ceilings per m²

2020

2021

Guadeloupe

€10.48 €

€10.55

Meeting

€10.48 €

€10.55 €

Mayotte

€10.48 €

€10.55 €

Guyana

€10.48 €

€10.55 €

Martinique

€10.48 €

€10.55 €

Saint Martin

€10.48 €

€10.55 €

Saint-Pierre and Miquelon

€10.48 €

€10.55 €

French Polynesia

€12.81 €

€12.83 €

New Caledonia

€12.81 €

€12.83 €

Wallis and Futuna Islands

€12.81

€12.83 €

The rent ceilings vary according to the surface of the dwelling by application of multiplier .

The ceilings may be reduced to reflect the particularities of local rental markets.

To fill your tax return, you can view the following documents:

Ceiling

The tax credit is calculated within the following 2 ceilings:

  • €300 000 per person per year
  • €5,500 per m² of living space.

You must also consider the overall cap on tax benefits.

Tax Reduction Rate

The rate varies depending on the duration of the lease.

  Please note : The rules are different overseas.

Initial commitment 6 years

Rate of tax reduction from September 2014 based on the duration of the lease

Rate

Distribution of tax reduction

Initial period of 6 years

12%

2% per year

3re 3 year extension

6%

2% per year

2e 3 year extension

3%

1% per year

Initial commitment 9 years

Rate of tax reduction from September 2014 based on the duration of the lease

Rate

Distribution of tax reduction

Initial period of 9 years

18%

2% per year

3 year extension

3%

1% per year

  FYI : the reduction rates will be gradually reduced for acquisitions made from 2023 onwards. Except for housing located in a priority area of city policy or which meets a high level of quality.

From 2013 to August 2014 (Duflot)

You benefit from a tax reduction if you are fiscally domiciled in France and have made rental real estate investments, subject to fulfilling conditions related to the tenant and the rental. The tax reduction Duflot, shall apply to investments made from January 2013 to August 2014.

Types of acquisitions

The tax credit applies to the following properties:

  • New Housing
  • Housing in future completion state
  • Housing you're building
  • Old housing being renovated (which represents at least 25% the total cost of the operation).
  • Housing undergoing rehabilitation
  • Local converted into a dwelling.

  Warning : the tax reduction applies to a maximum of 2 units per year.

Investment period

The tax reduction applies to transactions between January 2013 and August 2014.

Location

The accommodation must be in zone A or B1 at the time of the investment.

It may also be located in zone B2 if there is a particular need for rental accommodation, and subject to the issuance of a State licence since July 2013.

You can check your investment area with this simulator:

Energy performance

The housing must meet an overall energy performance level depending on the type of acquisition.

Energy performance based on acquisition type

Type of accommodation

Energy performance required

New or to be built

Thermal Regulation RT 2012

(or BBC 2005 label in case of building permits filed before 2013)

Requires work

HPE label renovation 2009

or BBC label renovation 2009

  Warning : overseas, different rules apply.

The tenant cannot be your child or parent and should not belong to your tax centre.

Sound reference tax income shall not exceed the regulatory ceilings.

Metropole

Maximum Annual Resources (2019 Tax Reference Income) by Geographic Area - Lease entered into in 2021 - Metropolitan

Composition of the tax centre

Area A

Area A

Area B1

Area B2

Area C

Single

€38,377

€38,377

€31,280

€28,152

€28,152

Couple

€57,357

€57,357

€41,772

€37,594

€37,594

+ 1 dependant

€75,188

€68,946

€50,233

€45,210

€45,210

+ 2 dependants

€89,769

€82,586

€60,643

€54,579

€54,579

+ 3 dependants

€106,807

€97,766

€71,340

€64,206

€64,206

+ 4 dependants

€120,186

€110,017

€80,399

€72,359

€72,359

Increase per additional dependant

+ €13,390

+ €12,258

+ €8,969

+ €8,070

+ €8,070

Overseas

Maximum Annual Resources (2019 Tax Reference Income) by Geographic Area - Lease Completed in 2021 - Overseas

Composition of the tax centre

Department of Overseas (Dom)

Saint Martin

Saint Pierre and Miquelon

French Polynesia

New Caledonia

Wallis and Futuna

Single

€28,606

€28,606

€31,099

Couple

€38,202

€38,202

€41,528

+ 1 dependant

€45,941

€45,941

€49,941

+ 2 dependants

€55,461

€55,461

€60,290

+ 3 dependants

€65,241

€65,241

€70,923

+ 4 dependants

€73,527

€73,527

€79,928

Increase per additional dependant

+ €8,206

+ €8,206

+ €8,920

Know the area of your town: A, Abis, B1, B2 or C

Directorate of Legal and Administrative Information (Dila) - Prime Minister

The accommodation must be rented as main dwelling.

It must be leased no later than 1 year after the completion of the building or after its acquisition.

The minimum lease term is 9 years.

The monthly rent shall not exceed, excluding charges, the following ceilings:

Metropole

Monthly rent ceilings, per m², charges not included, for leases concluded in mainland France

Location

Monthly rent ceilings per m²

2020

2021

Area A

€17.43

€17.55

Area A

€12.95

€13.04

Area B1

€10.44

€10.44

Area B2 (on approval)

€9.07

€9.13

Overseas

Monthly rent ceilings, per m², charges not included, for leases concluded in mainland France

Location

Monthly rent ceilings per m²

2020

2021

Guadeloupe

€10.48 €

€10.55

Meeting

€10.48 €

€10.55 €

Mayotte

€10.48 €

€10.55 €

Guyana

€10.48 €

€10.55 €

Martinique

€10.48 €

€10.55 €

Saint Martin

€10.48 €

€10.55 €

Saint-Pierre and Miquelon

€10.48 €

€10.55 €

French Polynesia

€12.81 €

€12.83 €

New Caledonia

€12.81 €

€12.83 €

Wallis and Futuna Islands

€12.81

€12.83 €

The rent ceilings vary according to the surface of the dwelling by application of multiplier .

The ceilings may be reduced to reflect the particularities of local rental markets.

To fill your tax return, you can view the following documents:

Ceiling

The tax credit is calculated within the following 2 ceilings:

  • €300 000 per person per year
  • €5,500 per m² of living space.

You must also consider the overall cap on tax benefits.

Tax Reduction Rate

The rate is 18% the amount of the investment.

The tax reduction is spread over 9 years (2% per year for 9 years).

For example, for an investment of €300 000, the tax reduction is €6 000 per year [(18% x €300 000 /9.

  FYI : the rules are different overseas.