PINEL LAW

Reminder: what is the Pinel Law?

The Pinel Law, initially introduced in September 2014, has been extended several times in the past. The last known extension was until 31 December 2022. However, tax schemes such as the Pinel law can be modified or extended again by government authorities.

It is therefore important to check the tax news and official announcements regularly to find out the exact date on which the Pinel law will end or if it will be extended. If you are considering investing under the Pinel law, it is advisable to consult a tax adviser or property professional for up-to-date information and advice tailored to your situation.

Last year for the PINEL tax reduction scheme

This scheme, which offers significant tax benefits to property investors, will expire on 31 December 2024. Under the Pinel law, investors can claim tax reductions on the purchase of new or renovated properties in prime locations. They must commit to renting the property on an unfurnished basis to tenants meeting a certain income and rent ceiling, for a specified period.

This year, the rates of tax reduction on the amount invested continue to fall according to the length of the commitment:

• 6 years: 9%; and
• 9 years: 12
• 12 years: 14%.

For the "Pinel +" tax reduction scheme, the rates remain stable and offer more attractive reductions. However, the criteria for comfort, habitability and energy efficiency have been tightened:

• 6 years: 12
• 9 years: 18% discount
• 12 years: 21% discount