Comment bénéficier de la loi Pinel ?
Making a rental investment and taking advantage of tax reductions are the promises of the Pinel law. Who can benefit from it and how?
How to benefit from the advantages of the Pinel law?
For several years now, the Pinel law has allowed investors to rent real estate while benefiting from tax reductions. This easy-to-access and profitable real estate tax exemption system is highly appreciated by French taxpayers. Do you want to start investing in Pinel? Find out everything you need to know about the Pinel law , how it works and its advantages. At the end of this file, you will have all the keys in hand to make your investment and benefit from the advantages of the Pinel device.
The main principles of the Pinel law
The real estate tax exemption system of the Pinel law was created following the observation of the rental situation of several large cities and agglomerations. The lack of housing supply in relation to rental demand being increasingly important, a solution has been put in place to encourage investors to settle in the cities concerned: the Pinel law. How does this device work? Here are the main principles of the Pinel law.
The goods concerned
To benefit from the Pinel law, you must acquire a dwelling concerned by this device. These are above all new properties or properties under construction, located in collective housing. Until January 1, 2021, it was still possible to invest in single-family homes, but this is no longer the case today.
Last criterion for a new apartment in collective housing to be taken into account in the Pinel system: its energy consumption. Real estate projects recently completed or in the process of being completed generally meet these criteria. The apartments are well insulated and have low energy consumption or even positive energy in the case of eco-districts.
For the implementation of the Pinel law, the entire metropolitan territory was divided into 5 zones . Depending on the zone in which the property you wish to acquire is located, you may or may not benefit from the advantages of Pinel.
The 5 areas are:
- Zone A and Abis . This mainly concerns the city of Paris, its surroundings and municipalities where rents are particularly high (Lyon, Marseille, Lille, etc.). Discover the Pinel law in Lyon .
- Area B1 . All cities with more than 250,000 inhabitants and some smaller towns with high rental prices (La Rochelle, Bayonne, Annecy, etc.).
- Area B2 . Cities and towns with more than 50,000 inhabitants. The Pinel law has not been in place in this area since 2018.
- Area C. The rest of the territory and cities. Area not eligible for Pinel since 2018.
Who can benefit from the Pinel law?
The Pinel system is accessible to all taxpayers domiciled in France for tax purposes. It is also granted in joint ownership or in SCI. On the other hand, the Pinel law does not concern housing in the dismemberment of ownership.
Open to all, the Pinel law mainly benefits households located in an average Marginal Tax Bracket (TMI). For heavily taxed tax households, other more advantageous real estate tax exemption schemes exist.
What are the advantages of the Pinel device?
Thanks to its non-restrictive conditions, its ease of implementation and its performance , the Pinel system is very popular with investors. Return on the advantages of an investment in the Pinel law.
One of the most important points of the Pinel law is its tax interest . Indeed, this device allows you to benefit from a reduction on the amount of your taxes or even to absorb them completely. Note that it is not possible to create a land deficit with the Pinel law. If the amount of the reduction is greater than that of your tax, the surplus is simply lost.
The rate of reduction of your taxes under the Pinel law is calculated according to the duration of the rental :
- 12% reduction for a lease over a minimum of 6 years;
- 18% reduction for a lease over a minimum of 9 years;
- 21% reduction for a minimum rental of 12 years.
This percentage is calculated on the basis of the total price of the property (purchase price + notary fees) and is spread over the entire duration of the rental commitment. Note that you can deduct mortgage interest, property insurance and rental management fees from your rental income .
The return on investment
By carefully choosing your starting property, it is possible to achieve a good return on investment thanks to the Pinel system.
At the end of the rental commitment period, you can dispose of your property as you wish: continue the rental to have a regular cash flow, sell your property to realize a capital gain, live in it as a main residence or keep it as a secondary residence.
Finally, be aware that with the Pinel law it is quite possible to rent your accommodation to a member of your close family (ascendant or descendant) and to continue to benefit from the tax advantages.