Pinel law and ceilings

As part of a real estate investment, you plan to use the Pinel device? If you would like to have information about Pinel’s ceilings, you are in the right place. Rent, income or resources of the tenant, etc. We explain everything about the ceilings of the Pinel device.

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  • Making your rental investment in Pinel law
  • The ceilings related to the Pinel law
    • The limits of resources of the tenant in Pinel law
    • Rent ceilings per m² in Pinel law
    • The ceiling related to your investment in Pinel
  • Why choose the law Pinel for your project?

Make your rental investment in Pinel law

Are you going to make a rental investment in Pinel law? This incentive for rental investment was set up by the government in order to replace the Duflot law, now obsolete in August 2014.

Since September 2014, the Pinel law allows you to benefit from a reduction in taxes on income. Certain conditions are to be respected so that your real estate project is born with the Pinel law:

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  • New housing;
  • Main dwelling;
  • Housing in the future state of completion (VEFA);
  • Housing that you are building;
  • Housing undergoing rehabilitation work;
  • Premises transformed into residential dwelling;
  • The Pinel Act allows 2 investments (2 dwellings) maximum per year;
  • The accommodation must be located in zone A, zone A Bis or zone B1. Any other area will no longer be affected by the Pinel law (adaptability to the real estate market and demand)

It is important for your rental real estate investment project in Pinel law, to check at prior to the area in which the dwelling is located . The main risk would be not being able to benefit from the planned tax reductions (tax benefit: tax benefit: tax exemption).

Limits related to the Pinel law

Among the conditions related to the Pinel law, the nature of the housing, its recency, its area, energy standards and ceilings are to be respected. There are several types of ceilings for the Pinel law:

  • Resource caps (benchmark tax income);
  • Rent ceilings;

Tenant’s resource limits in Pinel law

Single person : Zone A Bis: 38,465€/Zone A: 38,465€/Zone B1:31 352€

Couple : Zone A Bis: 57,489€/Zone A: 57 489€/Area B1:41,868€

1 dependent : Zone A Bis: 75 361€/Zone A: 69 105€/Zone B1:50 349

2 dependents€ : Zone A Bis: 89,439€/Zone A: 82,776€/Zone B1:60 783€

3 dependents : Zone A Bis: 107 053€/Zone A: 97 991€/Zone B1:71 504€

4 dependents : Zone A Bis: 120 463€/Zone A: 110 271€/Zone B1:80 584€

Mark-up per dependant : Zone A Bis: 13,421€/Zone A: 12,286€/Zone B1: 8,990€

Rent ceilings per m² in Pinel law

Zone A Bis : the ceiling for 2020 is€17.43 per square meter

Zone A : the ceiling for 2020 is€12.95 per square meter

Zone B1 : the ceiling for 2020 is€10.44 per square meter

Rent ceilings are to be checked annually with official sources of the service public.

Good to know : some ceilings can be reduced in view of the peculiarities of local rental markets.

The ceiling linked to your investment in Pinel

In addition, the last limit to be respected in relation to the Pinel law will be the amount of your investment. The tax reduction is calculated within the limit of two limits:

  • Maximum investment of €300,000 per person per year
  • Maximum investment of €5,500 per square meter of living space

Why choose Pinel law for your project?

If you plan to plan for a retirement, build up a wealth or simply invest to tax tax, the Pinel device is ideal. Your real estate investment must necessarily be rental. Did you know that it is possible to rent your new home to a descendant or an ascendant of your family?

The Pinel scheme is aimed at any taxpayer wishing to see their income taxes reduced, while investing sustainably in housing. The duration of your rental must be 6 years, 9 years or 12 years. The tax reduction percentage will be proportional to your landlord commitment to your tenant. Just remember that the longer the rental, the more interesting the Pinel law is forthe investor .

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