It is confirmed ! The Pinel Act is renewed, without any major amendment, for 2016. This year will consequently be the last one allowing to benefit from the tax exemption for real estate investments.
Quick Reminder of the 2014 Pinel Act key points:
For more informations, check the dedicated article: Pay less taxes with the Pinel Act
The Pinel Act is a fiscal measure following the Duflot Act. It is applicable to all the French taxpayers, and consist in helping private individuals wishing to invest in the new-build, with an income tax reduction over a minimum period. This reduction is calculated on the cost of the housing.
These measures are designed to promote the construction of new-build in determined areas. In order to be qualified for the Pinel Act, the new real estate programs must respect:
• Renting a new accommodation as a primary residence over a period of : 6, 9 or 12 years
• The investment limit is 300 000 € per year
• The purchase of the property must be done between the 1st September 2014 and the 31st December 2016.
The few amendments of 2016:
It has been agreed to remove an element from the Duflot Act : the principle of diversity. This principle was forbidding to apply the tax exemption to more than 80% of the accommodations of one building. It has been realised that this rule was detrimental to the Pinel Act appeal.
A readjustment of the rent limit and of the limit of the tenants incomes according to their situation should also be set up.
Eventually, it is possible for new cities to be included into the Pinel Act Area. You can already check the different Pinel areas of 2014 on: follow this
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