Real estate tax exemption: the Pinel and other solutions

The tax authorities grant advantages to the French by encouraging them to invest in dynamic sectors, to create jobs and to respond to social policies or the protection of heritage. Therefore, many plans are implemented to reduce taxes in return for real estate investment.

The property tax exemption consists of a reduction of your income tax thanks to a real estate investment. These tax reduction measures have been put in place to promote, support or reactivate a sector. They allow, for example, the construction of new houses or the renovation of old buildings. Thanks to the numerous real estate tax exemption laws, each taxpayer can choose the one that suits his personal situation. This type of investment is preferred by the French in search of security.

The tax authorities prefer to invest in new, furnished or old investments. In fact, with a range of devices, you can reduce your taxes or get deductions for buying real estate. To take advantage of these advantages, it is recommended to invest:

These rules can be applied to different types of taxes, for example. For example, income tax, wealth tax or corporation tax.

real estate Pinel

Property tax exemption

Theoretically, investing in real estate offers many tax advantages. In fact, you need to be careful to avoid fraud and cheating. For more information on precautions, visit this site.

Among the devices provided by the tax authorities, two of the best known are the Pinel device and the Malraux device.


It is with the Pinel the best known device to investors. This allows you to invest in a reformed property. However, this type of operation is subject to very strict rules. Do not improvise a bad investment.

In reality, this means investing in rehabilitation projects located in well-defined sectors known as ZPPAUP (zone of protection of architectural and urban heritage and urban landscape) or in protected sectors.

The tax reduction granted is calculated on the amount of work with a maximum of €100,000 per year, which can be spread over 4 years. Therefore, if you are in a protected sector, you have the opportunity to reduce the amount of work by 30%, and in a ZPPAUP by 22%.

real estate rehabilitated and new

The Pinel device is probably the best known device among investors. If you invest in a new house and agree to rent it for a period of 6 to 12 years, you can benefit from a tax credit of up to 21% of the investment. However, it cannot exceed 300,000 euros per year of investment. It's also worth keeping in mind that Pinel's tax cut falls within the upper bounds of tax loopholes.

Land real estate

The real estate deficit consists of renting a residential property and deducting certain expenses. These will be deducted from the calculated rents, after the total income has reached a maximum of €10,700 per year. By reducing your overall income, the taxpayer reduces his tax.

The expenses relate to the management of the property, such as agency fees, property taxes and condominiums. Repairs, maintenance and renovation costs may also be charged. Interest on loans is only deductible from real estate income, they cannot produce a deficit of total income. These interest rates can be accumulated in the result of the property over the next ten years. To realize a real estate deficit, the investor must commit to renting the property for at least three years and to collect his real estate income under the royal regime.

It is an attractive solution for any investor, because the prices of real estate are lower than those of new buildings, 30% more expensive on average, or old classified buildings (such as Malraux or Historic Monuments). The owner is free to do whatever work he wants, with no upper limit. The country's deficit mechanism allows for the creation of wealth and the generation of additional income while reducing taxes.