Equivalent to Pinel for old housing, its eligibility depends on the extent of the renovation work planned at the time of purchase.
A reduction in income tax is offered to individuals who acquire housing with a view to renovating it, in an old degraded district, to offer it for rental.
Appointed Denormandythis device extends the advantages of Pinel are extended to rental investments in the old with works.
It is therefore renovation that is encouraged here by this tax reduction. It concerns home purchases made between January 1, 2019 and December 31, 2023.
Housing: what conditions?
The accommodation must be in a municipality:
- whose need for housing rehabilitation is particularly marked, municipality being part of those mentioned in the appendix to the decree of March 26, 2019 relating to the list of municipalities giving right to the tax reduction provided for in 5° of B of I of article 199 novovicies of the general tax code;
- having entered into a territory revitalization operation agreement provided for in Article L. 303-2 of the Construction and Housing Code.
Still concerning this accommodation, it must be rented for 6.9 or 12 years at a price deemed reasonable and must be intended for modest households who respect resource ceilings.
The works concerned
The work to be undertaken must represent at least 25% of the total cost of the operation.
They still have to:
- improve energy performance by at least 30% (or 20% in the case of collective housing);
- or be related to one of the following 5 points: renovation of walls, roofs, windows, change of boiler or hot water production;
- or be the source of new living space.
What tax reduction to expect?
Capped at an investment of 300,000 euros maximum, this reduction is calculated on the net cost price, to which a percentage is applied which varies according to the rental period of the accommodation:
- For a rental period of 6 years: tax reduction of 12% of the price of the property
- 9-year lease: 18% of the price of the property;
- rental of 12 years: 21% of the price of the property.
