Income Tax - Rental Investment Pinel/Duflot Law (tax reduction)
Verified 12 March 2024 - Directorate for Legal and Administrative Information (Prime Minister)
Additional cases ?
If you have made a rental investment, you can benefit from a tax reduction. The mechanism Pinel applies if the investment has been made since September 2014 and until 31 december 2024. The mechanism Duflot applies if it has been made 2013 to August 2014.
Pinel
You benefit from a tax reduction if you are fiscally domiciled in France and have made rental real estate investments. The so-called tax cut Pinel applies to investments made since September 2014 and until 31 december 2024. You must meet conditions related to the tenant and the rental.
You can prepare your investment with the following simulator:
Pinel/Duflot device calculator
Types of acquisitions
The tax reduction relates to the following properties:
- New dwelling
- Housing in the future state of completion
- The housing you're building
- Old dwelling undergoing renovation work (at least 25 % of the total cost of the operation).
- Housing undergoing rehabilitation work
- Premises converted into residential accommodation
Warning
since 1er january 2021, the reduction relates to only dwellings located in a collective building. It no longer concerns individual and residential housing.
Time limits for housing completion
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Housing in the state of future completion
The dwelling must be completed within 30 months after the signature of the authentic act of acquisition.
Housing to be built
The housing must be completed within 30 months from the date of obtaining the building permit.
Housing under construction
The housing must be completed on 31 December of the 2nde year after the acquisition of the dwelling or premises.
Investment Period
The tax reduction relates to the transactions carried out between september 2014 and december 31, 2024.
Warning
the tax reduction applies to a maximum of 2 dwellings per year.
Location of the accommodation
The dwelling must be in zone A, A bis or B1.
You can check the area in which your investment is located with a simulator:
Know the area of his commune: A, Abis, B1, B2 or C
FYI
in BrittanyHowever, the Pinel reduction only applies to dwellings located in specific areas defined by the regional prefect.
Search for areas affected by the Pinel device in Brittany region
Level of energy and environmental performance
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Pinel + device
Since 2023, the Pinel + scheme applies to the following acquisitions:
- Accommodation located in a priority area of city politics
- Housing that respects a high level of quality
If you choose a high quality dwelling, you will have to meet several energy and environmental performance criteria.
Housing acquired in 2023
The Pinel+ scheme offers the same tax advantages as the classic Pinel before 2023, but housing must meet higher criteria.
Please note
If the housing acquired from 2023 does not meet the Pinel + criteria, the tax reduction rate is reduced.
You must acquire a new dwelling respecting use criteria and environmental criteria.
The criteria for use are as follows:
- Minimum living area (e.g. 28 m2 for a one-room apartment)
- Minimum surface area of private or privately enjoyed outdoor space (e.g. 3 m2 for a one-room apartment)
Housing must meet the energy and environmental performance thresholds of the RE 2020 standard (effective 2025).
For dwellings for which a building permit has been applied for before 1er January 2022, the environmental criteria shall be based on the ‘E+C-’ label and the ‘A’ label of the DPE: titleContent must be reached.
Acquired dwellings that do not result from a construction operation (e.g., refurbishment) must meet the EPD A or B label.
Housing acquired in 2024
The Pinel+ scheme offers the same tax advantages as the classic Pinel before 2023, but housing must meet higher criteria.
Please note
If the housing acquired in 2024 does not meet the Pinel+ criteria, the tax reduction rate is reduced.
You need to acquire a new home that meets usage and environmental criteria.
The criteria for use are as follows:
- Minimum living area (e.g. 28 m2 for a one-room apartment)
- Minimum surface area of private or privately enjoyed outdoor space (e.g. 3 m2 for a one-room apartment)
The energy and environmental performance criteria are as follows:
- RE 2020 Thresholds (Effective 2025)
- Class A of DPE: titleContent
For dwellings for which a building permit has been applied for before 1er January 2022, the environmental criteria are based on the ‘E+C-’ label and the EPD label A has to be met.
Acquired dwellings that do not result from a construction operation (e.g., refurbishment) must meet the EPD A or B label.
Other acquisitions
The dwelling must comply with an overall energy performance level depending on the type of purchase.
Type of dwelling | Required energy performance level |
|---|---|
New or to be built | Thermal regulation RT 2012 (or BBC 2005 label in case of building permits filed before 2013) |
Requiring work | Label HPE renovation 2009 or label BBC renovation 2009 |
The tenant may be your child or your parent provided that they do not belong to your tax shelter.
Sound reference tax income shall not exceed the regulatory ceilings.
Metropolis
Composition of the tax household | Area A bis | Zone A | Zone B1 | Zone B2 | Area C |
|---|---|---|---|---|---|
Single person | €43,475 | €43,475 | €35,435 | €31,892 | €31,892 |
Torque | €64,976 | €64,976 | €47,321 | €42,588 | €42,588 |
+ 1 dependent | €85,175 | €78,104 | €56,905 | €51,215 | €51,215 |
+ 2 dependants | €101,693 | €93,556 | €68,699 | €61,830 | €61,830 |
+ 3 dependants | €120,995 | €110,753 | €80,816 | €72,735 | €72,735 |
+ 4 dependants | €136,151 | €124,630 | €91,078 | €81,971 | €81,971 |
Surcharge per additional dependant | + €15,168 | + €13,886 | + €10,161 | + €9,142 | + €9,142 |
Overseas
Composition of the tax household | Overseas Department (Dom) | Saint Martin's Day Saint Pierre and Miquelon | French Polynesia New Caledonia Wallis and Futuna Islands |
|---|---|---|---|
Single person | €31,589 | €31,589 | €34,369 |
Torque | €42,186 | €42,186 | €45,896 |
+ 1 dependent | €50,731 | €50,731 | €55,192 |
+ 2 dependants | €61,243 | €61,243 | €66,630 |
+ 3 dependants | €72,044 | €72,044 | €78,380 |
+ 4 dependants | €81,192 | €81,192 | €88,333 |
Surcharge per additional dependant | + €9,063 | + €9,063 | + €9,859 |
The accommodation must be rented empty (unfurnished) as main dwelling.
It must be rented at the latest 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:
Metropolis
Location of the accommodation | Monthly rent ceilings per m² | |
|---|---|---|
2023 | 2024 | |
Area A bis | €18.25 | €18.89 |
Zone A | €13.57 | €14.03 |
Zone B1 | €10.93 | €11.31 |
Areas B2 and C (by approval) | €9.5 | €9.83 |
Overseas
Location of the accommodation | Monthly rent ceilings per m² | |
|---|---|---|
2023 | 2024 | |
Guadeloupe | €11.19 | €11.65 |
Reunion | €11.19 | €11.65 |
Mayotte | €11.19 | €11.65 |
Guiana | €11.19 | €11.65 |
Martinique | €11.19 | €11.65 |
Saint Martin's Day | €11.19 | €11.65 |
Saint-Pierre and Miquelon | €11.19 | €11.65 |
French Polynesia | €13.56 | €14.18 |
New Caledonia | €13.56 | €14.18 |
Wallis and Futuna Islands | €13.56 | €14.18 |
Rent ceilings vary depending on the size of the dwelling application of a multiplier.
The ceilings may be reduced to take account of the particularities of local rental markets.
Ceiling
The tax reduction is calculated on the cost price of up to 2 dwellings.
The total amount invested shall be retained within the following 2 ceilings:
- €300,000 per taxpayer per year
- €5,500 per m² of living space
You must also consider the overall cap on tax benefits.
Rate of tax reduction
The rate varies depending on the lease term.
For acquisitions made from 2023 onwards, the reduction rates will be gradually reduced.
However, the rates shall not be reduced for the following acquisitions (Pinel+ scheme):
- Accommodation located in a priority area of city politics
- Housing that respects a high level of quality
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Accommodation located in a priority area of the city's politics or which respects a high level of quality
Initial 6-year commitment
Rate | Allocation of the tax reduction | |
|---|---|---|
Initial period of 6 years | 12% | 2% per year |
1re 3-year extension | 6% | 2% per year |
2e 3-year extension | 3% | 1% per year |
Initial 9-year commitment
Rate | Allocation of the tax reduction | |
|---|---|---|
Initial period of 9 years | 18% | 2% per year |
3-year extension | 3% | 1% per year |
Other acquisitions
Acquisition before 2023
Initial 6-year commitment
Rate | Allocation of the tax reduction | |
|---|---|---|
Initial period of 6 years | 12% | 2% per year |
1re 3-year extension | 6% | 2% per year |
2e 3-year extension | 3% | 1% per year |
Initial 9-year commitment
Rate | Allocation of the tax reduction | |
|---|---|---|
Initial period of 9 years | 18% | 2% per year |
3-year extension | 3% | 1% per year |
Acquisition in 2023
If the dwellings do not comply with the criteria laid down in the Pinel + scheme, the tax reduction rates are reduced.
The rates are as follows:
Duration of the commitment | Rate |
|---|---|
6 years | 10.5% |
9 years | 15% |
12 years | 17.5% |
Acquisition in 2024
If the dwellings do not comply with the criteria laid down in the Pinel + scheme, the tax reduction rates are reduced.
The rates are as follows:
Duration of the commitment | Rate |
|---|---|
6 years | 9% |
9 years | 12% |
12 years | 14% |
FYI
The rules are different overseas.
To fill your tax return, you can view the following documents:
- Fiches de l'Anil on the device Pinel
- Explanatory notes
- Tax Return Brochure (indication of documents to be provided or retained)
Duflot
You benefit from a tax reduction if you are fiscally resident in France and you've done rental real estate investment, provided that conditions relating to the tenant and the rental. The tax cut, known as Duflotshall apply to investments made January 2013 to August 2014.
Types of acquisitions
The tax reduction relates to the following properties:
- New dwelling
- Housing in the future state of completion
- The housing you're building
- Old housing being renovated (which represent at least 25% of the total cost of the operation).
- Housing undergoing rehabilitation work
- Premises converted into residential housing.
Warning
the tax reduction applies to a maximum of 2 dwellings per year.
Investment Period
The tax reduction relates to the transactions carried out January 2013 to August 2014.
Location of the accommodation
The dwelling must be in zone A or B1 at the time of the investment.
It may also be located in zone B 2 if there is a particular need for rental housing.
Since 1er in July 2013, this extension requires the issuance of a State approval.
You can check the area of your investment with this simulator:
Pinel/Duflot device calculator
Energy performance level
The dwelling must comply with an overall energy performance level depending on the type of purchase.
Type of dwelling | Required energy performance level |
|---|---|
New or to be built | Thermal regulation RT 2012 (or BBC 2005 label in case of building permits filed before 2013) |
Requiring work | Label HPE renovation 2009 or label BBC renovation 2009 |
Warning
overseas, different rules apply.
The tenant cannot be your child or parent and must not belong to your tax shelter.
Sound reference tax income shall not exceed the regulatory ceilings.
Metropolis
Composition of the tax household | Area A bis | Zone A | Zone B1 | Zone B2 | Area C |
|---|---|---|---|---|---|
Single person | €43,475 | €43,475 | €35,435 | €31,892 | €31,892 |
Torque | €64,976 | €64,976 | €47,321 | €42,588 | €42,588 |
+ 1 dependent | €85,175 | €78,104 | €56,905 | €51,215 | €51,215 |
+ 2 dependants | €101,693 | €93,556 | €68,699 | €61,830 | €61,830 |
+ 3 dependants | €120,995 | €110,753 | €80,816 | €72,735 | €72,735 |
+ 4 dependants | €136,151 | €124,630 | €91,078 | €81,971 | €81,971 |
Surcharge per additional dependant | + €15,168 | + €13,886 | + €10,161 | + €9,142 | + €9,142 |
Overseas
Composition of the tax household | Overseas Department (Dom) | Saint Martin's Day Saint Pierre and Miquelon | French Polynesia New Caledonia Wallis and Futuna Islands |
|---|---|---|---|
Single person | €31,589 | €31,589 | €34,369 |
Torque | €42,186 | €42,186 | €45,896 |
+ 1 dependent | €50,731 | €50,731 | €55,192 |
+ 2 dependants | €61,243 | €61,243 | €66,630 |
+ 3 dependants | €72,044 | €72,044 | €78,380 |
+ 4 dependants | €81,192 | €81,192 | €88,333 |
Surcharge per additional dependant | + €9,063 | + €9,063 | + €9,859 |
The accommodation must be rented as main dwelling.
It must be rented at the latest 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:
Metropolis
Location of the accommodation | Monthly rent ceilings per m² | |
|---|---|---|
2023 | 2024 | |
Area A bis | €18.25 | €18.89 |
Zone A | €13.57 | €14.03 |
Zone B1 | €10.93 | €11.31 |
Areas B2 and C (by approval) | €9.5 | €9.83 |
Overseas
Location of the accommodation | Monthly rent ceilings per m² | |
|---|---|---|
2023 | 2024 | |
Guadeloupe | €11.19 | €11.65 |
Reunion | €11.19 | €11.65 |
Mayotte | €11.19 | €11.65 |
Guiana | €11.19 | €11.65 |
Martinique | €11.19 | €11.65 |
Saint Martin's Day | €11.19 | €11.65 |
Saint-Pierre and Miquelon | €11.19 | €11.65 |
French Polynesia | €13.56 | €14.18 |
New Caledonia | €13.56 | €14.18 |
Wallis and Futuna Islands | €13.56 | €14.18 |
Rent ceilings vary depending on the size of the dwelling application of a multiplier.
The ceilings may be reduced to take account of the particularities of local rental markets.
Ceiling
The tax reduction is calculated on the cost price of the acquired dwelling.
The tax reduction is calculated up to 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.
Rate of tax reduction
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.
To fill your tax return, you can view the following documents:
- Anil data sheets on Duflot devices
- Explanatory notes
- Tax Return Brochure (indication of documents to be provided or retained)
Who can help me?
Find who can answer your questions in your region
For general information
Tax Information Service
By telephone:
0809 401 401
Monday to Friday from 8:30 am to 7 pm, excluding public holidays.
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To contact the local service managing your folder
Department in charge of taxes (treasury, tax department...)
Tax reduction scheme
Rent and resource ceilings
Geographical areas characterized by an imbalance between housing supply and demand (municipalities classified in zone B2)
Municipalities with a significant imbalance between housing supply and demand (classified in areas A and B1)
Designation of geographical areas A bis, A, B1, B2 and C
Thermal characteristics of new buildings and new parts of buildings
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