Pinel Law: Last Opportunities for Real Estate Tax Benefits
The Pinel Law is a French tax incentive encouraging rental investment in new housing.
Available to all taxpayers in France — both French and foreign — it allows investors to reduce their taxes while building long-term property wealth.
Exell Finance, wealth management specialist since 1999, highlights the advantages of the Pinel investment scheme before its expected reform in 2018.
What Is the Pinel Scheme?
Introduced on September 1st, 2014, the Pinel Law offers a tax reduction of up to €63,000, or €6,000 per year.
To qualify, investors must purchase a new property or off-plan residence (VEFA) and rent it out for at least six years as the tenant’s main residence.
Tax reduction based on rental period:
-
6 years → 12% of the purchase price
-
9 years → 18% of the purchase price
-
12 years → 21% of the purchase price
The Pinel scheme also allows renting to family members, an option not permitted in previous programs.
Why Invest Now?
The Pinel program has proven highly successful thanks to its flexibility, strong fiscal benefits, and stable returns.
It applies to high-demand rental areas, ensuring low vacancy risk and solid profitability.
With interest rates at record lows and a stable property market, 2017 remains the best time to invest.
Deadline – December 31, 2017
The current version of the Pinel Law expires on December 31, 2017.
Given rising new-build prices and administrative delays (banks, notaries, building permits), acting quickly is key to securing the full fiscal advantage.
2018 Outlook – Toward Reform
The French government plans to revise and narrow the Pinel scope in 2018 to reduce its cost.
Experts expect stricter eligibility and lower tax benefits, making 2017 the last optimal opportunity for investors.
Get Expert Advice from Exell Finance
With more than 150 Pinel transactions completed, Exell Finance provides tailored assistance for your real estate and tax strategy.
📞 N° Azur: 0 825 560 060
📧 contact@exellfinance.com
📍 50 rue de Châteaudun, 75009 Paris
🌐 www.exellfinance.fr