Everything you need to know about the 2023 Pinel Law
The Pinel Law was created on 1 September 2014 with the aim of encouraging developers to build housing in so-called "tense" areas where demand is greater than supply. This housing is aimed at investors who will benefit from income tax reductions, in return for which they must rent their property for a minimum of 6 years with a rent indexed to the imposed scale. In order to benefit from this advantage, the communes must be in the zones classified A, A bis or B1, zone meaning the difficulty of housing. Evian-les-Bains and Thonon-les-Bains are in Zone Pinel B1, communes thus eligible with the Law Pinel. This law, which is due to end in 2021, has been extended until 2024.
As of January 1st , 2023, the Pinel Law is changing !
The tax benefit rates will decrease according to the following method:
6-year commitment
2022 : 12% > 2023 : 10.5 %
9-year commitment
2022 : 18% > 2023 : 15%
12-year commitment
2022 : 21% > 2023 : 17.5%
This decrease will be established for new housing built with the former "RT2012" standard
Here is the calculation method to know the maximum rent amount in relation to the m² of an apartment:
The maximum rent ceiling must be multiplied by a coefficient of 0.7+19 then divided by the weighted surface area.
Example: For a 42 sqm. apartment with a 6 sqm. balcony in Evian, in Zone B1:
Surface to be taken into account: 42sqm + (6/2sqm) = 45sqm.
Ceiling zone B1: 10,55€/sqm.
Maximum rent: (10,55x(0,7+19/45))x45 = 531,72€.
The surface area to be taken into account is the living area of the dwelling plus half the surface area of the annexes. Such as cellars, basements, attics, balconies, terraces or verandas. These must not exceed 9m² and first floor terraces and gardens are not counted.
The Pinel Law + !
An advantage will be granted to investors who will buy new housing according to the new RE2020 standard, i.e. with a building permit filed after January 1st 2022: they will benefit from the full rate according to the percentages of 2022.
Year 2023 with RT 2012 Year 2023 with RE2020
Commitment 6 years 10.5 % 12%
Commitment 9 years. 15% 18%
Commitment 12 years. 17.5% 21%
Since January 1st, 2022, all applications for planning permission or prior declaration for single-family houses and multi-family houses are subject to the new RE2020 standard. Buildings will have to provide more energy than they consume, so-called "responsible buildings". In addition, office and school building projects requiring planning permission or prior declaration are subject to the RE2020 standard from July 1st, 2022.
Comfort criteria will also have to be respected, such as a minimum surface area in relation to the type of property:
1-room apartment minimum of 28 sqm
2-room apartment minimum of 45 sqm
3-room apartment minimum of 62 sqm
4-room apartment minimum of 79 sqm
5-room apartment minimum of 96 sqm
All homes must have an outdoor space and be double-exposed to ensure optimum use of natural light.
Eligible conditions under the Pinel Law
The property must be part of a group of properties and must be new or in the process of being completed (VEFA), i.e. a purchase off-plan.
The investor can invest a maximum of €300,000 per year with a maximum of 2 units. The property must be rented as a principal residence and the tenant's income is capped according to the geographical zone, i.e. zone B1 for Evian-les-Bains and Thonon-les-Bains where the ceiling is 10.55€/sqm. Follow this link to calculate your Pinel rent.
Investing in new real estate with the Pinel Law
In this year 2022, it is the ideal time to invest in new property! Here are all our online ads.
Contact :
- Evian +33 (0) 4 50 75 15 15 / e-mail : evian@decordier-immobilier.com
- Thonon +33 (0) 4 50 72 31 95 / e-mail : thonon@decordier-immobilier.com
www.decordier-immobilier.com