By purchasing a new apartment, the investor can benefit from a maximum income tax reduction of 12, 18 or 21%, calculated on the purchase price of the property according to the rental period commitment of six, nine or twelve years. The reduction is calculated on the purchase price, capped at 300,000 euros and 5,500 euros per square meter. The tax benefit, which can reach 63,000 euros over twelve years, is possible under certain conditions. Note that for investments made in 2023 and 2024, the tax reduction will be calculated at a less favorable rate, 15% and 12% respectively, for a nine-year rental commitment.
This scheme is part of the tax niches capped at 10,000 euros per year.
Zones A bis, A or B1
The aim of this scheme is to encourage construction in localities suffering from a lack of housing. It is concentrated in the so-called "A bis" zones (Paris and seventy-six surrounding municipalities), "A" (the rest of the municipalities in the Paris area, the Côte d'Azur, cities such as Lyon, Lille, Montpellier, Marseille, etc.) and "B1" (large urban areas, municipalities in the greater Paris area outside the A and A bis zones)
Maximum rents
The property (unfurnished) must be rented as a principal residence and there is a ceiling on the rents charged (excluding charges). This limit is revised every year. In 2022, this maximum rent is set at 17.62 euros per square meter in zone A bis, 13.09 euros in zone A and 10.55 euros in zone B1.
The first rental must take place within twelve months of the purchase or completion of the work. One of the aims of this scheme is to provide housing for as many people as possible.
Tenant's income
The income of the tenant is also taken into account. His/her income conditions must not exceed a certain amount. An income ceiling, revised each year, is fixed according to the zone.
Note that the tenant can be an ascendant or even a descendant provided that he or she does not belong to the investor's tax household.
Our opinion
Buying a new home for rent, in order to reduce your taxes, can be a winning investment. However, it is important to borrow at the best rate, not to overpay for the property (maximum difference of 25% compared to the old one), and finally to invest in a city with a dynamic rental market, where the supply of new Pinel programs is not too abundant.
At a glance
- Security: the success of the investment depends on the quality of the property.
- Performance: limited by the ceiling on rents.
- Term: six or nine years, extendable to twelve years.
- Liquidity: varies according to the local real estate market.
- Taxation: attractive if you rent for at least six years.
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