Important (2026 scales)
As of January 1, 2026, Service-Public states that some caps (rents/income) applicable in 2026 have not yet been published. This page therefore presents:
- the stable 2026 rules (conditions, works, deadlines, rates, investment caps, zones/municipalities, etc.);
- and, for the figures, the latest officially published amounts (2025), clearly identified.
Eligibility period (transactions)
until December 31, 2027
What is the Denormandie scheme for?
Denormandie is an income tax reduction mechanism designed to encourage the purchase of an older home (or premises converted into housing) followed by improvement works, in order to rent it out over a commitment period. The goal is to encourage the renovation of older housing stock and the supply of rent-capped housing in certain municipalities.
Type of benefit
Income tax reduction
Durations
6 / 9 / 12 years
Property
Older home + works (or converted premises)
Eligibility conditions (2026 references)
A. Type of property
- An older home undergoing improvement works, or premises converted into residential use.
- The works must represent at least 25% of the total cost of the transaction.
(Total cost of the transaction: purchase + works, according to the methods used by the tax authorities.)
B. Investment period
- Transactions carried out between March 28, 2019 and December 31, 2027.
- In 2026, you are therefore within the eligibility window if your transaction meets the conditions and deadlines.
C. Location (municipalities / co-owned buildings)
- The home must be located in an eligible municipality (Action Cœur de Ville, ORT, significant rehabilitation needs),
- or in a co-owned building in serious difficulty (e.g. provisional administration / ORCOD).
D. Works deadlines
- The works must be completed no later than December 31 of the 2nd year following the purchase.
Example (official): purchase in February 2026 → works completed no later than December 31, 2028.
Works: rules & examples
Under Denormandie, you must carry out a type of works meeting the administrative criteria. The rationale is twofold: renovate (older home) and improve (quality / performance / floor area).
Option 1 — Energy performance gain
- Works improving energy performance by at least 20%
- At least 30% for single-family homes
For these works, using an RGE-certified professional is recommended (administrative guidance).
Option 2 — At least 2 categories of works
Carry out at least 2 types among:
- Boiler replacement
- Attic insulation
- Wall insulation
- Hot water production replacement
- Window insulation
Option 3 — Creation of new living space
- Creation of new living space (examples mentioned: balcony, terrace, garage…)
Reminder: the works must represent at least 25% of the total cost of the transaction.
Amount of the Denormandie tax reduction
The tax reduction is calculated on the net cost price (purchase + renovation expenses) and depends on the length of time you commit to renting the property (mainland France).
| Rental commitment period | Reduction rate (mainland France) | At a glance |
|---|---|---|
| 6 years | 12% | Reduction spread over the period |
| 10 years | 18% | Longer commitment, higher benefit |
| 12 years | 21% | Maximum rate |
Investment caps
- Base capped at a maximum investment of €300,000.
- Additional cap of €5,500 per m² of living space.
- Take into account the overall cap on tax benefits (tax shelters).
Non-combination
Denormandie cannot be combined with certain other buy-to-let schemes (e.g. Loc'Avantages), according to the administrative rules stated by the Ministry of the Economy.
Rental rules (main obligations)
A. Type of rental
- The home must be rented unfurnished.
- The home must be rented as a primary residence.
B. Time limits for renting out
- The home must be rented out no later than 1 year after the building's completion or after its purchase (depending on the situation).
C. Choice of tenant
- The tenant must not belong to your tax household.
- Their income must comply with caps (official scales).
D. Capped rent
- The rent (excluding charges) must comply with a cap depending on the zone (A bis, A, B1, B2/C…).
- The scales are (generally) revised every year.
See the administrative references (renting, deadlines, works)
- Works: energy gain or bundle of works, or creation of living space (with the 25% threshold).
- Works completed no later than December 31 of the 2nd year following the purchase.
- Unfurnished rental, primary residence, within the time limits; tenant outside the tax household; rent and income caps.
Reference: Service-Public (Denormandie fact sheet)
Scales (caps) — 2026 status + latest official amounts
2026 status: Service-Public states that as of 01/01/2026, some caps applicable to an investment made in 2026 are not yet known and will be published/updated later.
See the official notice on Service-Public
Latest officially published caps (year 2025) — rents (m²) and income (mainland France)
2025 monthly rent caps (€/m², excluding charges) — zones
Reference: BOFiP (RFPI scale, Duflot/Pinel mainland France) — used as the basis for rent control
| Zone | 2025 cap |
|---|---|
| A bis | €19.51 |
| A | €14.49 |
| B1 | €11.68 |
| B2 and C | €10.15 |
2025 income caps (2023 reference tax income) — mainland France
Reference: Service-Public ("lease signed in 2025" table)
| Tax household | A bis | A | B1 | B2 | C |
|---|---|---|---|---|---|
| Single person | €43,953 | €43,953 | €35,825 | €32,243 | €32,243 |
| Couple | €65,691 | €65,691 | €47,842 | €43,056 | €43,056 |
| + 1 dependent | €86,112 | €78,963 | €57,531 | €51,778 | €51,778 |
| + 2 dependents | €102,812 | €94,585 | €69,455 | €62,510 | €62,510 |
| + 3 dependents | €122,326 | €111,971 | €81,705 | €73,535 | €73,535 |
| + 4 dependents | €137,649 | €126,001 | €92,080 | €82,873 | €82,873 |
| Increase per additional person | + €15,335 | + €14,039 | + €10,273 | + €9,243 | + €9,243 |
Practical tip: to find out the zone (A, A bis, B1, B2 or C), use the official simulator: Find out your municipality's zone
Practical checklist (2026)
Before buying
- Check the municipality (official Denormandie simulator).
- Validate the works strategy: energy gain / bundle of works / creation of living space.
- Estimate whether the works actually reach ≥ 25% of the total cost.
- Prepare quotes and a schedule (works completion deadlines).
After buying
- Start the works and keep all supporting documents (quotes, invoices, certificates).
- Meet the deadline: works completed no later than 12/31 of the 2nd year following the purchase.
- Rent out unfurnished (primary residence) within the required time limit.
- Apply the rent caps and check the tenant's income.
Tax filing and documents to keep
Keep in particular: the lease, the tenant's tax notice, a summary note of the works and amounts, and supporting documents for the works. The filing procedures are detailed on the Ministry of the Economy's page.
FAQ
Is the scheme really still valid in 2026?
Yes, provided your transaction meets the conditions and falls within the eligibility period stated by the administration (until 12/31/2027). Reference: Service-Public and the Ministry of the Economy.
What does "works ≥ 25% of the total cost" mean?
It means the amount of the works must represent at least 25% of the overall transaction (purchase + works), according to the methods applied by the administration. Reference: Service-Public.
Are the 2026 rent/income caps already known?
Service-Public states that as of 01/01/2026, some caps applicable in 2026 are not yet known and will be published/updated. In the meantime, the most recent figures presented here are the 2025 scales (Service-Public + BOFiP).
Other investment solutions
As a complement or an alternative to Denormandie, other schemes can help you invest in real estate.
LMNP (non-professional furnished rental)
Furnished rental: tax advantages, tax regimes, conditions and obligations. Complete guide with official sources.
Serviced furnished rentals
Professional furnished rental: definition, conditions, tax advantages, differences with LMNP, and obligations.
Bare ownership
Split-ownership real estate investment: definition, tax advantages, reduced purchase price, simplified management, and estate planning optimization.
Unfurnished rental
Unfurnished rental: the classic buy-to-let investment. Taxation, advantages, obligations and differences with furnished rental.
LLI (intermediate-rent housing)
Intermediate-rent housing: a buy-to-let scheme with 10% reduced VAT and a tax credit. Conditions and tax advantages.
Girardin
Girardin scheme: investing in the French overseas territories with a tax reduction. Conditions and tax advantages.
Historic Monument
Investing in a Historic Monument: exceptional tax advantages for heritage restoration.
Disclaimer
The information in this article comes from the official sources referenced in the "Official sources" section at the bottom of the page. Handee cannot be held liable for any errors, omissions or interpretations of the information presented.
If in doubt or for any question specific to your situation, we invite you to consult the official sources mentioned directly (Service-Public, Ministry of the Economy, BOFiP, France Rénov', ANCT, etc.) or to contact a qualified professional (notary, chartered accountant, tax advisor).
The exact rules applicable to your case depend on the eligible municipality, the type of works, compliance with deadlines, rent/income caps, the commitment period and the legislation in force. Eligibility conditions, scales and rules may change. Only the official sources are authoritative.