PINEL LAW : LATEST OPPORTUNITIES FOR DEFISCALIZING
The Pinel Law is a tax incentive scheme for rental investment in metropolitan France, accessible to any taxpayer taxed in France, whether French or foreign.
EXELL FINANCE, wealth manager since 1999, proposes to rediscover the numerous tax advantages of this law before its probable modification in 2018.
WHAT THE PINEL DEVICE :
Since 1 September 2014, the Pinel Law allows French taxpayers to benefit from a tax reduction of up to € 63,000 to € 6,000 per year. To benefit from this tax benefit, investors must buy a new housing off-plan (sale in the future state of completion) and rent for a minimum period of 6 years as the principal residence for the tenant.
The tax benefit granted will depend on the duration of renting:
6 years of rent = 12% reduction in the price of housing returns.
9 years of rent = 18% reduction in the price of housing returns.
12 years of rent = 21% reduction in the price of housing returns.
The Pinel device also makes it possible to rent the dwelling to an ascendant or to a descendant, which was not the case of the preceding devices.
IS IT TIME TO INVEST?
The Pinel device has been very popular since it was put in place just 3 years ago. The reasons for this craze are multiple:
A powerful tax system and more advantageous than previous devices
A flexible tax system: length of detention and short-term rental (6 years), almost unpublished possibility to rent the property to an ascendant or a descendant.
A very favorable financial environment with low bank rates and a stable property price.
The Pinel law is limited to large cities with a tight rental market.
INVEST BEFORE DECEMBER 31, 2017
On the strength of its success with taxpayers and its positive impact on the French economy, the Pinel law that initially had an end scheduled for December 31, 2016, was renewed for one year. It will therefore end on December 31, 2017.
In a context where rates remain at low levels, investing in stone while reducing taxes seems particularly appropriate.
At the same time, prices for new real estate have risen steadily in recent months, after a period of relative stability in 2015-2016.
It is therefore important to launch the latest operations quickly because the implementation of these operations is long (at least 3 months), especially as banks and notaries may face many issues at the end of the year , lengthening processing times.
AND 2018 ?
The Minister of Territorial Cohesion, Jacques Mezard, announced a reframing of the Pinel law. Indeed, although the role of the Pinel law is undeniable in the recovery of construction in France and the economy in general, it is nonetheless a costly law for the state coffers: 1 billion planned for the only year 2017.
If the state can not afford to remove the tax incentive incentives for real estate investment, the closure of the 2018 budget will undoubtedly pass a significant coup plot of the law Pinel, making it possibly less attractive than it is not currently.
Exell Finance carried out in 2015 and 2016 more than 150 acts in Pinel law. Its wealth managers are at your disposal to assist you efficiently in your Pinel project.
Contact our advisors now : N°AZUR 0 825 560 060
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