07.12.2017

Pinel’s law renewal in 2018

Some adjustments are made to the measures, without reassessing the advantages for the taxpayer. The aim of the government is to make the measures more efficient than what it is today.

Thereby the Pinel's law will be renewed in 2018, for 4 years. Its title won't change, and it is aligned with the provisions already applicable.
In practice, tax concessions tied with investment remain unaltered. Only certain requirements for the application and for the eligibility related to Pinel's areas are progressing. 

Government's aim: redefining the measures in " tense " areas, where the demand remains higher than the supply of available properties. As a reminder, the 2018 Pinel's law allows all the investors to benefit from a tax reduction which can increase to 21% of the property price for an investment made on 12 years in an eligible new-build program. 



PINEL'S LAW AREAS IN 2018: NOVELTIES 

The application areas of the Pinel's law 2018 will be redefined the next 4 years on the A, A bis and B1 areas. The B2 and C areas, eligible to the Pinel's law until 2017, leave the measures from 2018. 

PINEL'S LAW ADVANTAGES: UNALTERED 

High tax reduction 
Tax breaks of Pinel's law are kept in 2018. These tax concessions depend on rental length: 
21% of the investment price for 12 years of rental 
18% of the investment price for 9 years of rental 
12% of the investment price for 6 years of rental 

Wealth accumulation 
Pinel's law 2018 allows to build a lasting wealth by investing in bricks and mortar, easily transmittable 

Investing without inputs 
Pinel's measures allow to resort to a real estate loan, without giving a starting input. 

Preparing retirement 
Investment in Pinel's law allows to prepare the retirement serenely. From the legal period of the pass housing possession, the owner runs his property the way he wants. He can sell his/her property from the perspective of doing a capital gain, renting it or living in it as a principal or secondary residence. 

Renting to relatives 
One of the novelties in Pinel's law compared to the old Duflot's law, is to have the opportunity to rent your property to relatives. Thereby, related can buy a new- build housing thanks to Pinel's measures and accommodate their child(ren) while making the most of Pinel's law tax concessions. 

PINEL'S FINANCING INVESTMENT IN 2018

  • Purchasing a new- build property according to eligibilty conditions
  • Renting the property on a period of 6, 9, or 12 years 
  • Collecting the rent during all the period of renting 
  • Profit of a tax reduction from 12% to 21% of the property price (to €63.000)


PINEL'S LAW 2018 ELIGIBILITY: CONDITIONS

  • Purchasing a new- build property eligible to the Pinel's law between January, 1st 2012 and December, 31st 2022 
  • The property needs to be situated in eligible Pinel's 2018 areas : A, A bis and B1 
  • A property rented during 6, 9 or 12 years 
  • The investment limit is 2 properties per year, for a maximum investment of €300.000 per year, and a 5.500/sqm upper limit 
  • The respect of tenants financial ressources upper limits, and rents upper limits of the area where the property is 
  • The proper implementation of thermal and energy performances norms (BBC 2005 or RT 2012).
  • In the event of the tenant is a forebear or descendant, he can't be a member of the tax household. 
  • The respect of tax allowances ceiling sets to €10.000/ year. 

 

Source: loipinel.fr

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