New “Pinel Plus” Investment Scheme in France
Overview
On February 3, 2025, the French government announced the creation of a new tax investment scheme called “Pinel Plus”, effective from January 1, 2025. This scheme aims to encourage investment in energy-efficient and sustainable rental properties.
Eligibility
To qualify for the Pinel Plus scheme, rental properties must meet certain energy efficiency and environmental criteria:
- Energy Performance: Properties must achieve an Energy Performance Certificate (EPC) rating of either A or B by the end of the construction phase.
- Environmental Certifications: Properties must also obtain one of the following environmental certifications: NF Habitat HQE Excellent, BBCA (Bâtiments Bas Carbone), or E+C- (Énergie positive et réduction carbone).
Investment Conditions
The investment conditions for the Pinel Plus scheme are as follows:
- Investment Ceiling: The maximum investment limit is €300,000 per year.
- Rental Periods: Investors can choose between rental periods of 6, 9, or 12 years.
- Location: Properties must be located in designated areas, which currently include A, A bis, and B1 (except for Paris and the surrounding area).
Tax Benefits
Investors in Pinel Plus properties can benefit from the following tax deductions:
- Rental Income Reduction: Rent received from eligible properties is eligible for a tax reduction of 12% for a 6-year rental period, 18% for a 9-year period, and 21% for a 12-year period.
- Extended Rental Income Reduction: For properties that are energy-positive (E+), investors can receive an additional 2% tax reduction, resulting in a maximum reduction of 14% for a 6-year period, 20% for a 9-year period, and 23% for a 12-year period.
Other Benefits
In addition to the tax benefits, the Pinel Plus scheme also offers the following advantages:
- Long-Term Returns: Investments in rental properties can provide long-term rental income and capital appreciation.
- Energy Efficiency: Properties that meet the energy efficiency criteria can reduce operating costs and increase their value.
- Sustainability: Investing in environmentally friendly properties supports sustainable practices and helps reduce carbon emissions.
Conclusion
The Pinel Plus investment scheme is a significant initiative by the French government to encourage sustainable development and provide tax incentives for investments in energy-efficient rental properties. By meeting specific energy performance and environmental standards, investors can benefit from attractive tax reductions while contributing to the reduction of greenhouse gas emissions and promoting responsible housing practices.
Le dispositif d’investissement Pinel +
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