What to know about the Pinel rental investment scheme

The government voted new measures concerning the Duflot scheme, beginning by renaming it the Pinel scheme, after Sylvia Pinel, Minister for Housing, Equality of Territories and Rurality.

Principle

This is the modification of the Duflot rental investment scheme. As a reminder, the Duflot law allowed private investors to acquire new real estate in order to reduce their taxes.

In return, the buyer committed to:

– renting the property for a minimum period,

– respecting the rent ceilings,

– renting to private individuals whose income levels are subject to ceilings.

The rent ceiling is determined by geographical zoning:

Zone A bis Paris and 29 communes belonging to the inner suburbs: maximum rent €16.72/m2

Zone A Île-de-France, Côte d’Azur: maximum rent €12.42/m2

Zone B1 Agglomerations of more than 250,000 inhabitants: maximum rent €10/m2

Zone B2 Agglomerations of more than 50,000 inhabitants: rent €8.69/m2

Zone C Remainder of the territory. Not eligible for the scheme.

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The new features

The Pinel scheme is based on the same principles as the Duflot law. However, it includes new features:

• Choice of investment duration: 6, 9 or 12 years
• A tax reduction that depends on this duration respectively: 12%, 18% or 21%
• The investment duration is modulable over time
• Possibility of renting to one’s parents or children

These new features allow for a more flexible scheme offering more choice to investors compared to the Duflot law.

The advantages of the change in geographical zoning

Indeed, the other flagship measure taken by the government last summer is the change in geographical zoning. The new划分 allowed certain cities to be upgraded, thereby leading to a rent increase of 20% in certain cases (Marseille, Lyon, Lille for example).

If you wish to make a non-professional rental investment, contact our team by telephone on 01 70 61 27 15 or by email at [email protected]