The dipositif Pinel allows french taxpayers who purchase a new home or building from 1 September, 2014 onwards to benefit from a reduction in their income tax. The building must meet the energy and thermal regulations and economic standards.
The amount of the reduction in taxes on income is spread over 6 years, 9 years or 12 years. In order to benefit from the tax advantage, investors should comply with the following conditions :
- rent the property for 6 years, 9 years or 12 years
- the ceiling of calculating the tax reduction is € 300,000
- housing must be rented within 12 months after the delivery of the building
- the rent can not exceed the limit set by law
The purpose of the Pinel Act is to promote affordable Housing, for more details about this tax reduction please click here.