How can we tax tax with the Pinel law, this highly incentive for rental real estate investment? We explain all the ins and outs of the Pinel law, to reduce your taxes and take advantage of a significant tax advantage.
Others readers like : Plumbing: who pays, tenant or landlord?
- Pinel law: your tax advantage
- When to invest and make a Pinel tax tax transaction?
- The conditions of the Pinel tax exemption
Plan de l'article
The Pinel Law: Your Tax Advantage
The Pinel law is aimed at any taxpayer paying taxes and wishing to benefit from a reduction of taxes on income by making a rental investment in the new. Since 2014, this law has been renewed, victim of its success but also of the growing rental demand in France.
The system of tax tax in Pinel law is simple:
You may like : Property tax and monthly
- A discount tax of 12% of the price of the housing if you rent your property 6 years;
- A tax reduction of 18% if you rent your property for 9 years;
- A 21% tax reduction if you rent your property 12 years
Thus, the longer the term of renting the new property, the more interesting the tax advantage. The Pinel law defines price ceilings for the purchase of the property, evening a maximum of 5,500 euros per square meter . You can not exceed 300,000 euros, and this, on a maximum of two real estate purchases in a year. In total, over 12 years you can get a tax deduction of 63,000 euros (which corresponds to 21% of 300,000 euros).
When to invest and make a tax transaction Pinel?
It is important to note that the areas affected by the Pinel device have evolved considerably in 6 years. Today, the Pinel device is supposed to end on December 31, 2021. In terms of zoning, today only zones A, A Bis and B1 remain covered by the Pinel law. Zones B2 and C have disappeared from the scheme in order to rebalance the real estate market.
Compared to the Duflot law, the previous device, the conditions of the Pinel device are very relaxed:
- It is possible to rent the new property to a member of your family while retaining the tax benefit;
- The ceilings (rent and resources of tenants) are still in existence and do not represent a deterrent to investors in Pinel, who are very lessees of the scheme;
- The Pinel law is available in 3 versions, unlike the Duflot, which only offered a duration of 9 years;
- You with the opportunities to increase your tax reduction in a more advantageous way in the long term: a choice to make.
Good to know : the Pinel device is concerned with the cap on tax niches. This ceiling is equivalent to EUR 10,000 per year. Example: if you buy a house of 200 000 euros, each year for 9 years you will deduct 4,000 euros. The remaining 6,000 euros will benefit from other tax deductions.
The conditions of the Pinel tax exemption
A number of criteria must be met absolutely if you want to be eligible for the tax reduction proposed by the Pinel device:
- Buy new housing : the old real estate is not concerned by the Pinel;
- Have a rental real estate project : your property must necessarily be intended for rental, for 6, 9 or 12 years. If this rental undertaking is not respected, you will be liable to tax. In addition, the lease must be rented as the principal residence of the tenant;
- The choice of tenant : their income must not exceed a ceiling. That said, this condition is flexible, since 80% of French people fall into this category of income;
- Family rental : a bonus. With the Pinel tax tax law, your investment can stay with your family. You can rent the accommodation to an ascendant or descendant.
- The rents are capped : it is a healthy condition of the Pinel. It is imperative that the current ceilings are respected, since they are 10 -20% lower than the prices of the current real estate market.
- Zoning : it is to respect and check upstream of your investment in Pinel (zone A, zone A Bis, zone B1).
You know all about Pinel law: get accompanied to manage your tax tax safely and not to commit odd due to lack of knowledge of the tax or real estate sector.