The Pinel device is the mechanism that is appreciated by everyone today and which made it possible to boost sales of new homes in France during 2015. Flexible and very advantageous, this device has not yet finished talk about him.
The Pinel device, or “the mechanism that worked, that works and that will work” once again, according to the Head of State, is extended until December 31, 2017. It is during a trip to Romainville on April 1, 2016, the Head of State officially announced the extension of this system. This extension announcement, promoters and investors alike have all waited impatiently. As a reminder, this device, an improved version of the Duflot law, offers the possibility for each owner to rent the property he has acquired for rental purposes, to his ascendants and descendants. The investment period depends on the desires and financial situation of each owner. It can last 6, 9 or 12 years, with a corresponding tax reduction of 12, 18 or 21%.
In 2015 alone, the Pinel system helped to increase sales of new homes in France by 13.6%. The possibility for everyone to continue to rent their property for three more years, once the first commitment period has ended, is also one of the appreciable innovations that have guaranteed the success of the system. Those who have not yet subscribed to the system, but who wish to do so, can still get started before December 2017. But as with all major decisions, the purchase of real estate requires rigorous study, especially when the project requires the use of credit. The ideal way to facilitate the process will be to call on a mortgage broker like here. The credit broker is useful both for negotiating your loan and for helping with good credit management.
Applicable from September 1, 2014 to December 31, 2016, the Pinel scheme overseas is accessible to all French taxpayers who acquire new rental accommodation in Saint-Barthélemy, Guadeloupe, Saint-Martin, in Reunion, Mayotte, Martinique, Guyana, Saint-Pierre-et-Miquelon, French Polynesia, the Wallis Islands, Futuna, and New Caledonia. Overseas Pinel tax exemption is determined according to the amount of the investment and the duration of the rental. The longer the purchaser rents the property, the greater the tax reduction. Depending on whether the rental period is 6, 9 or 12 years, the reduction rate also varies between 23, 29 and 32%. It should also be noted that the property built as part of the system must comply with the so-called “BBC” construction standards. The rental must also take place during the period of 12 months following the delivery of the property.