Income Tax - Rental Investment Pinel/Duflot Law (tax reduction)
Verified 15 June 2023 - Legal and Administrative Information Directorate (Prime Minister)
Additional cases ?
If you have made a rental investment, you can benefit from a tax reduction. The benefits depend on when you made the investment. The mechanism Pinel applies if the investment has been made from september 2014. 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. You must meet conditions related to the tenant and the rental.
The so-called tax cut Pinel applies to investments made from september 2014.
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
As of 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 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)
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 from 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 | €41,855 | €41,855 | €34,115 | €30,704 | €30,704 |
Torque | €62,555 | €58,831 | €45,558 | €38,560 | €38,560 |
+ 1 dependent | €82,002 | €75,194 | €54,785 | €49,307 | €49,307 |
+ 2 dependants | €97,904 | €90,070 | €66,139 | €59,526 | €59,526 |
+ 3 dependants | €116,487 | €106,627 | €77,805 | €70,025 | €70,025 |
+ 4 dependants | €131,078 | €119,897 | €87,685 | €78,917 | €78,917 |
Surcharge per additional dependant | + €14,603 | + €13,369 | + €9,782 | + €8,801 | + €8,801 |
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 | €30,338 | €30,338 | €32,872 |
Torque | €40,516 | €40,516 | €43,896 |
+ 1 dependent | €48,722 | €48,722 | €52,788 |
+ 2 dependants | €58,818 | €58,818 | €63,727 |
+ 3 dependants | €69,192 | €69,192 | €74,966 |
+ 4 dependants | €77,978 | €77,978 | €84,485 |
Surcharge per additional dependant | + €8,704 | + €8,704 | + €9,429 |
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 | |
|---|---|---|
2022 | 2023 | |
Area A bis | €17.62 | €18.25 |
Zone A | €13.09 | €13.57 |
Zone B1 | €10.55 | €10.93 |
Zone B2 (upon approval) | €9.17 | €9.50 |
Overseas
Location of the accommodation | Monthly rent ceilings per m² | |
|---|---|---|
2022 | 2023 | |
Guadeloupe | €10.74 | €11.19 |
Reunion | €10.74 | €11.19 |
Mayotte | €10.74 | €11.19 |
Guiana | €10.74 | €11.19 |
Martinique | €10.74 | €11.19 |
Saint Martin's Day | €10.74 | €11.19 |
Saint-Pierre and Miquelon | €10.74 | €11.19 |
French Polynesia | €12.87 | €13.56 |
New Caledonia | €12.87 | €13.56 |
Wallis and Futuna Islands | €12.87 | €13.56 |
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 according to the duration of the lease commitment.
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
For housing acquired in 2023, the tax rate is as follows:
- 10.5% for a 6-year lease commitment
- 15% for a 9-year lease commitment
- 17.5% for a 12-year lease commitment
Acquisition in 2024
For housing acquired in 2024, the tax rate will be as follows:
- 9% for a 6-year lease commitment
- 12% for a 9-year lease commitment
- 14% for a 12-year lease commitment
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 concerns transactions carried out between January 2013 and 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 | €41,855 | €41,855 | €34,115 | €30,704 | €30,704 |
Torque | €62,555 | €58,831 | €45,558 | €38,560 | €38,560 |
+ 1 dependent | €82,002 | €75,194 | €54,785 | €49,307 | €49,307 |
+ 2 dependants | €97,904 | €90,070 | €66,139 | €59,526 | €59,526 |
+ 3 dependants | €116,487 | €106,627 | €77,805 | €70,025 | €70,025 |
+ 4 dependants | €131,078 | €119,897 | €87,685 | €78,917 | €78,917 |
Surcharge per additional dependant | + €14,603 | + €13,369 | + €9,782 | + €8,801 | + €8,801 |
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 | €30,338 | €30,338 | €32,872 |
Torque | €40,516 | €40,516 | €43,896 |
+ 1 dependent | €48,722 | €48,722 | €52,788 |
+ 2 dependants | €58,818 | €58,818 | €63,727 |
+ 3 dependants | €69,192 | €69,192 | €74,966 |
+ 4 dependants | €77,978 | €77,978 | €84,485 |
Surcharge per additional dependant | + €8,704 | + €8,704 | + €9,429 |
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 | |
|---|---|---|
2022 | 2023 | |
Area A bis | €17.62 | €18.25 |
Zone A | €13.09 | €13.57 |
Zone B1 | €10.55 | €10.93 |
Zone B2 (upon approval) | €9.17 | €9.50 |
Overseas
Location of the accommodation | Monthly rent ceilings per m² | |
|---|---|---|
2022 | 2023 | |
Guadeloupe | €10.74 | €11.19 |
Reunion | €10.74 | €11.19 |
Mayotte | €10.74 | €11.19 |
Guiana | €10.74 | €11.19 |
Martinique | €10.74 | €11.19 |
Saint Martin's Day | €10.74 | €11.19 |
Saint-Pierre and Miquelon | €10.74 | €11.19 |
French Polynesia | €12.87 | €13.56 |
New Caledonia | €12.87 | €13.56 |
Wallis and Futuna Islands | €12.87 | €13.56 |
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 ServiceBy telephone:
0809 401 401
Monday to Friday from 8:30 am to 7 pm, excluding public holidays.
Free service + call price
To contact the local service managing your folder
Department in charge of taxes (treasury, tax department...)
- General Tax Code: Article 199vTax reduction scheme
- General Tax Code, Annex 3: Article 2k to 2sRent and resource ceilings
- General Tax Code, Annex 3: Article 46 AZA G to 46 AZA MGeographical areas characterized by an imbalance between housing supply and demand (municipalities classified in zone B2)
- General Tax Code, Annex 4: Articles 18-0 bis B to 18-0 bis DMunicipalities with a significant imbalance between housing supply and demand (classified in areas A and B1)
- Construction and housing code: article R304-1Designation of geographical areas A bis, A, B1, B2 and C
- Construction and housing code: articles R111-20 to R111-20-6Thermal characteristics of new buildings and new parts of buildings
- Decree No. 2013-517 of 19 June 2013 on the reduction of rent ceilings and the approval of municipalities for tax aid for rental investment
- Decree of 1 August 2014 on the geographical zoning of municipalities (known as A/B/C)
- Order of 29 September 2009 on the content and conditions for the award of the "High energy performance renovation" label
- Order of 30 September 2014 on the classification of municipalities by zone applicable to certain housing subsidies
- Order of 8 May 2007 on the content and conditions for the award of the "high energy performance" label
- Bofip-Taxes n°BOI-IR-RICI relating to tax reductions and credits
- Bofip-Taxes n°BOI-IR-RICI-360 relating to income tax reduction for intermediate rental investment - Duflot and Pinel devices
- Bofip-Taxes n°BOI-BAREME-000017 relating to the rent and resource ceilings 2023 for rental real estate investment
- Pinel/Duflot device calculator
Simulator
- 2023 Simulator: 2022 Income Tax
Simulator
- Taxes: access your Special Space
Online service
- 2023 Online Income Tax Return 2022
Online service
- Income Tax Return (Paper)
Form
- 2023 Income Tax Return 2022 - Tax Reductions and Tax Credits
Form
FAQ
- Income tax: return and reportable incomeService-Public.fr
- Income tax: deductions, reductions and tax creditsService-Public.fr
- Buying or selling a homeService-Public.fr
- Tax SiteMinistry of Finance
- Tax reduction for rental investment "Duflot"National Agency for Housing Information (Anil)
- Tax reduction for rental investment "Pinel"National Agency for Housing Information (Anil)
- 2023 Practice Brochure - 2022 Income Tax ReturnMinistry of Finance
- Complying with the 2020 SOS to build your homeEcological Transition Agency (Ademe)