Before embarking on the purchase of a new home with a view to tax exemption thanks to the Pinel system, it is important to follow a few tips for a successful investment. And you can then benefit from the tax reduction which amounts to 12, 18 or 21% of the amount of your investment, and corresponds to the rental period of the property to which you agree: 6, 9 or 12 years.
The Pinel law aligns with the areas defined by the Minister of Housing, Sylvia Pinel . Indeed, your investment must be located in zone A1, A or B1 or B2. Properties located in zone C are excluded from the system. These zones have been revised in order to control the construction of new housing in areas where rental demand is real. This thus avoids building buildings solely for the purpose of tax exemption and that they are not subsequently rented. Zone A1 corresponds to Paris and its suburbs, zone A to some major cities in France such as Marseille or Lyon, but also the Côte d’Azur or Ile de France. Zones B1 include those with more than 250,000 inhabitants, the greater Parisian suburbs and a few towns where real estate prices are the highest. B2 zones concern towns with more than 50,000 inhabitants.
The Pinel law requires investing in new housing, or off-plan. It is also necessary that the property be labeled in BBC 2005 or respect the 2012 thermal regulations. construction site opening. Then, it is up to you to rent the property well within 12 months of handing over the keys. And don’t make the mistake of living in the property even for a few days, where you won’t be able to take advantage of your tax reduction.
Online simulators exist to help you define the best rental period that will be proportional to your tax reduction. Depending on your contribution and the expected rents and depending on the geographical area, you can determine how much you can invest. By carrying out these Pinel law simulations, this will help you better understand your real estate investment project.
Financial conditions have been defined in order to limit excessive use of this tax reduction system. Also, you cannot invest more than €300,000 per year, nor buy a property that exceeds €5,500/m2. The number of investments is limited to 2 per year. Also be careful not to exceed the ceiling of tax loopholes limited to €10,000 per year and per household and to which the Pinel law is subject.
Once your property has been purchased for tax exemption, you will have to rent the property as a principal residence, unfurnished. You will also have to respect rent ceilings defined according to the geographical areas. Resource ceilings have also been established in order to open the rental of housing to households with limited resources.