The real estate tax exemption grants you a tax reduction whose rate and duration depend on the device chosen. Here, we are not only talking about the Pinel law, which remains the best known, but also other legislation providing for tax advantages. What texts are they? What tax measures are planned? Are they still applicable in 2021? Overview !
The Pinel law grants you a reduction in income tax, provided you rent your building for more than 6 years. The rate varies with the length of the rental. For example, if you plan to rent for 9 years, it is set at 18%. On the other hand, if the period is 12 years, the rate is 21%.
Obviously, the Pinel device imposes some conditions to be able to benefit from it. These requirements relate to:
However, the Pinel law is only reserved for rental investors in new buildings. It is also not the only one, other legislation provides for tax benefits.
This legislation grants you tax reductions, provided that you invest in furnished rentals (in a new building) belonging to the following categories:
As for the rate, it depends on the rental period. For example, if it lasts between 9 and 12 years, it is set at 11% of the cost price of the building. But, like the Pinel law, the ceiling is determined at 300,000 euros.
Tax exemption in real estate is not only reserved for new buildings. It is also applicable to elders. This is the case of the Malraux law which grants you a tax reduction ranging from 22 to 30%.
Obviously, this tax benefit is granted under certain conditions. Your building must already be located in the Urban and Landscape Architectural Heritage Protection Zone (ZPPAUP), then you must start repair work.
In 2019, a new device was born. This is the so-called “Denormandie” text, provided for by the 2019 finance law, concerning the rehabilitation and renovation of old buildings in the city center. It grants you a tax reduction under two conditions:
As for the rate of the reduction, it depends on the duration of the rental or the conservation of the property. For example, if you plan to rent it for 6 years, it is fixed at 2%. On the other hand, if the rental period is 12 years, it amounts to 21%.
But, like all tax advantages, the text provides for additional conditions relating to the building, the tenant and the owners. In this case, do not hesitate to inquire further.