It was put in place to allow investors to fund new real estate programs while reducing their tax rates.
Borrowing money
In order to fully benefit from the Pinel law, you have to buy the rental property on credit, fiscally it is the most beneficial. Indeed, borrowing interest is deductible from property income.
Commitment
You must rent for 6, 9 or 12 years the acquired new housing. This is THE condition to benefit from the reduction of your taxes.
The interest
The State reimburses you between 12% and 21% (12% over 6 years, 18% over 9 years and 21% over 12 years) of the price of the real estate in the form of a reduction of your taxes, which can go up to 63.000,00€
For example, the financing of your property represents approximately :
- 18% for the State
- 45% for the tenant
- 37% for yourself