⚠️ Scheme ended
The Pinel scheme ended on 31 December 2024. It is no longer possible to make new investments under this scheme since 1 January 2025.
If you invested before that date, you can continue to benefit from the tax advantages provided you comply with all the commitment conditions.
How Pinel works (excluding Pinel+)
The Pinel scheme (also called the "Pinel tax reduction") is a tax mechanism that grants an income tax reduction to individuals who buy a home (usually new-build) to rent it out, subject to conditions (commitment period, caps, etc.).
Important for this page: we are talking here about the "classic" Pinel, i.e. the "standard" regime whose rates were lowered in 2023 and then 2024. Pinel+ is a special case ("full" rates maintained if stricter criteria are met) — deliberately excluded here.
Purpose
Regulated rental investment
A tax reduction in exchange for a rental commitment over a given period.
Durations
6, 9 or 12 years
The reduction rate depends on the length of the rental commitment.
Legal framework
CGI art. 199 novovicies
Detailed rules set out in the tax doctrine (BOFiP) and the legal texts.
Pinel before 2024: how the "classic" version worked (recap)
A. The "full" rates (until 31/12/2022)
Before the gradual reduction, the usual Pinel rates were higher.
| Commitment | "Full" rate (until 31/12/2022) |
|---|---|
| 6 years | 12% |
| 10 years | 18% |
| 12 years | 21% |
These "historical" rates are confirmed by institutional housing information sources and by the tax administration.
B. Core rules (valid throughout the period)
A few parameters come up systematically in the texts and the doctrine.
- Maximum basis: reduction calculated on a cost price capped at €300,000 per year (and a maximum of 2 dwellings per year).
- Per-m² cap: cap on the cost price per m² (administrative reference: €5,500/m²).
- Rental commitment: 6 years (extendable), 10 years, or 12 years depending on the structure provided for by the legal text.
In practice, Pinel is also subject to other conditions (rent caps, tenant income caps, zoning, etc.). The exact rules are detailed in the official sources listed at the bottom of the page.
Official rate timeline: until 2022, then 2023 and 2024
The 2021 budget law provided for a gradual reduction of the rates for investments made in 2023 and 2024 (excluding "Pinel+" cases).
Scope: classic Pinel (excluding Pinel+).
| Period (investment date) | 6 years | 10 years | 12 years | How to read it |
|---|---|---|---|---|
| Until 31/12/2022 | 12% | 18% | 21% | Historical "full" rates |
| From 01/01/2023 to 31/12/2023 | 10.5% | 15% | 17.5% | Gradual reduction (phase 1) |
| From 01/01/2024 to 31/12/2024 | 9% | 12% | 14% | Gradual reduction (phase 2) — classic Pinel |
What changed in 2024 (excluding Pinel+): the scheme still existed until 31/12/2024, but the reduction rates are those in the last row (9% / 12% / 14%). The "full" rates only remain applicable in the specific cases attached to Pinel+ (not covered here).
Caps and calculation basis (key official reminders)
In addition to the rates, the administration sets limits on the calculation basis and the price per m².
A. Maximum basis (annual cap)
The basis of the tax reduction is capped: €300,000 per taxpayer and per tax year, and the benefit is limited to a maximum of two dwellings per year.
(See the BOFiP doctrine dedicated to Pinel and to the application rules / calculation basis.)
B. Price cap per m²
The cost price is also subject to a per-m² cap (administrative reference: €5,500 / m²).
(This cap is mentioned on an official page of the economic administration about Pinel.)
Do not confuse: reduction rates (9/12/14 in 2024) and caps (€300,000/year basis, €/m² cap, etc.). Rent caps and tenant income caps also depend on the zone and the year: refer to the doctrine and the official tables.
End of Pinel on 31/12/2024: what it means in practice
Pinel was extended until 31 December 2024. In other words, for the "classic" Pinel, the entry window closed on 31/12/2024, with reduced rates in 2023 and then 2024.
If an investment enters the scheme in a given year (for example 2024), the reduction is then spread over time according to the commitment period (6/9/12 years), but eligibility depends on the completion date and the conditions set by the regulations.
What ends
The possibility of "entering" the classic Pinel scheme after 31/12/2024 (except for specific provisions).
What continues
Reductions already acquired continue according to the planned schedule (as long as the conditions are met).
Other investment solutions
Since 1 January 2025, the Pinel scheme is no longer available for new investments. Other schemes can be considered for rental investment:
Unfurnished rental
Classic rental investment with property income.
Furnished
Non-professional furnished rental (LMNP): tax advantages, tax regimes, conditions and obligations.
Denormandie scheme
For buying and renovating properties in certain areas.
LLI
Intermediate-rent housing (LLI): a rental investment scheme with VAT reduced to 10% and a tax credit.
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, please consult the official sources mentioned (BOFiP, Service-Public, Légifrance, Écologie.gouv.fr, Économie.gouv.fr, etc.) or contact a qualified professional (notary, chartered accountant, tax advisor).
As the Pinel scheme ended on 31 December 2024, the information presented is historical in nature. Investors who invested before that date must honour their commitments to continue benefiting from the tax advantages. Eligibility depends on the characteristics of the dwelling, the exact acquisition/completion date, the applicable zoning and ongoing compliance with the obligations (rental, caps, etc.). Only the official sources are authoritative.