Income tax - Rental investment Pinel/Duflot law (tax reduction)
Verified 01 January 2026 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)
Additional cases ?
Tenant's resource cap and rent cap in 2026
Certain rent and resource ceilings applicable to a rental investment made in 2026 are not yet known.
This page will be updated when these amounts are published.
If you have made a rental investment, you can benefit from a tax reduction. The device Pinel applies if the investment has been made before 1er January 2025. Duflot applies if it was done from 2013 to August 2014. We tell you what you need to know.
Pinel
You can no longer make a rental investment with the Pinel device since 1er January 2025. If you made your investment before that date, you can continue to benefit from a tax reduction if you meet the conditions.
Types of acquisitions
The tax reduction relates to the following goods:
- New housing
- Housing in future state of completion
- Housing that you build
- Old housing undergoing renovation (representing at least 25% of the total cost of the operation).
- Housing undergoing rehabilitation work
- Premises converted into residential housing.
Warning
Since 1er January 2021, the reduction concerns only dwellings located in a collective building. It no longer concerns individual and suburban housing.
Timeliness of completion of housing
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Housing in the state of future completion
The accommodation must be completed within 30 months of the signing of the authentic deed of acquisition.
Housing to build
The accommodation must be completed within 30 months from the date of obtaining the building permit.
Housing under construction
The accommodation is due to be completed on 31 December of the 2nde year after the acquisition of the dwelling or premises.
Period of investment
The tax reduction concerns transactions carried out between september 2014 and december 31, 2024.
Warning
The tax reduction applies to a maximum of 2 dwellings per year.
Location of the accommodation
The housing must be located in zone A, A bis or B1.
You can check the area in which your investment is located with a simulator:
Know the area of your municipality: A, Abis, B1, B2 or C
FYI
In BrittanyHowever, the Pinel reduction applies only to dwellings located in specific areas defined by the prefect of the region.
Search for the areas affected by the Pinel scheme in Brittany
Level of energy and environmental performance
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Pinel + device
Since 2023, the Pinel + scheme applies to the following acquisitions:
- Accommodation located in a priority area of city politics
- Housing that respects a high level of quality.
If you opt for a high-quality home, you will have to meet several energy and environmental performance criteria.
Housing acquired in 2023
The Pinel + scheme offers the same tax advantages as the classic Pinel before 2023, but the housing must meet higher criteria.
Please note
If the housing acquired from 2023 does not meet the Pinel + criteria, the tax reduction rate is reduced.
You must acquire a new home respecting use criteria and environmental criteria.
The criteria for use are as follows:
- Minimum living space (e.g. 28 m2 for a one-room apartment)
- Minimum area of private outdoor space or private enjoyment (e.g. 3 m2 for a one-room apartment).
Housing must meet the energy and environmental performance thresholds of the RE 2020 standard (which come into force in 2025).
For dwellings for which planning permission has been applied for before 1er January 2022, the environmental criteria are based on the ‘E+C-’ label and the A label of the EPD: titleContent must be reached.
Acquired dwellings not resulting from a construction operation (e.g. refurbishment) must meet the EPD A or B label.
Housing acquired in 2024
The Pinel + scheme offers the same tax advantages as the classic Pinel before 2023, but the housing must meet higher criteria.
Please note
If the housing acquired in 2024 does not meet the Pinel + criteria, the tax reduction rate is reduced.
You need to purchase a new home that meets usage and environmental criteria.
The criteria for use are as follows:
- Minimum living space (e.g. 28 m2 for a one-room apartment)
- Minimum area of private outdoor space or private enjoyment (e.g. 3 m2 for a one-room apartment).
The energy and environmental performance criteria are as follows:
- ER 2020 Thresholds (effective 2025)
- Class A of EPD: titleContent.
For dwellings for which planning permission has been applied for before 1er January 2022, the environmental criteria are based on the ‘E+C-’ label and the EPD A label must be met.
Acquired dwellings not resulting from a construction operation (e.g. refurbishment) must meet the EPD A or B label.
Other acquisitions
The dwelling must comply with an overall energy performance level depending on the type of acquisition.
Type of accommodation | Energy performance level required |
|---|---|
New or to be built | Thermal regulation RT 2012 (or BBC 2005 label in case of building permit filed before 2013) |
Requiring work | Label HPE renovation 2009 or label BBC renovation 2009 |
The tenant can be your child or parent as long as they do not belong to your tax home.
Sound reference tax income shall not exceed the regulatory ceilings.
Metropolis
Composition of the tax household | Zone Aa | Zone A | Area B1 | Area B2 | Area C |
|---|---|---|---|---|---|
Single person | €43,953 | €43,953 | €35,825 | €32,243 | €32,243 |
Couple | €65,691 | €65,691 | €47,842 | €43,056 | €43,056 |
+ 1 dependent | €86,112 | €78,963 | €57,531 | €51,778 | €51,778 |
+ 2 dependants | €102,812 | €94,585 | €69,455 | €62,510 | €62,510 |
+ 3 dependants | €122,326 | €111,971 | €81,705 | €73,535 | €73,535 |
+ 4 dependants | €137,649 | €126,001 | €92,080 | €82,873 | €82,873 |
Increase per additional dependent | + €15,335 | + €14,039 | + €10,273 | + €9,243 | + €9,243 |
Overseas
Composition of the tax household | Overseas Department (Dom) | Saint Martin Saint Pierre and Miquelon | French Polynesia New Caledonia Wallis and Futuna Islands |
|---|---|---|---|
Single person | €32,602 | €32,602 | €34,607 |
Couple | €43,539 | €43,539 | €46,213 |
+ 1 dependent | €52,358 | €52,358 | €55,573 |
+ 2 dependants | €63,207 | €63,207 | €67,090 |
+ 3 dependants | €74,354 | €74,354 | €78,921 |
+ 4 dependants | €83,795 | €83,795 | €88,843 |
Increase per additional dependent | + €9,354 | + €9,354 | + €9,928 |
The accommodation must be rented empty (unfurnished) as main dwelling.
It must be rented no later than 1 year after the completion of the building or after its acquisition.
The minimum duration of the lease commitment is 6 years.
The monthly rent must not exceed, excluding charges, the following ceilings:
Metropolis
Location of the accommodation | Monthly rent ceilings per m² | |
|---|---|---|
2024 | 2025 | |
Zone Aa | €18.89 | €19.51 |
Zone A | €14.03 | €14.49 |
Area B1 | €11.31 | €11.68 |
Areas B2 and C (on approval) | €9.83 | €10.15 |
Overseas
Location of the accommodation | Monthly rent ceilings per m² | |
|---|---|---|
2024 | 2025 | |
Guadeloupe | €11.65 | €12.02 |
The Meeting | €11.65 | €12.02 |
Mayotte | €11.65 | €12.02 |
French Guiana | €11.65 | €12.02 |
Martinique | €11.65 | €12.02 |
Saint Martin | €11.65 | €12.02 |
Saint-Pierre and Miquelon | €11.65 | €12.02 |
French Polynesia | €14.28 | €14.18 |
New Caledonia | €14.28 | €14.18 |
Wallis and Futuna Islands | €14.28 | €14.18 |
Rent ceilings vary depending on the surface of the dwelling by application of a multiplier.
The ceilings may be reduced to take account of the specificities of local rental markets.
Ceiling
The tax reduction is calculated on the cost price of up to 2 dwellings.
The total amount invested is retained within the following 2 ceilings:
- €300,000 per taxpayer per year
- €5,500 per m² of living space
You must also consider the overall cap on tax benefits.
Rate of tax reduction
The rate varies depending on the duration of the lease commitment.
For acquisitions made from 2023 onwards, the reduction rates will be gradually reduced.
However, the rates are not reduced for the following acquisitions (Pinel+ device):
- Accommodation located in a priority area of city politics
- Housing that respects a high level of quality
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Housing located in a priority area of the city's policy or that respects a high level of quality
Initial commitment of 6 years
Rate | Distribution of the tax reduction | |
|---|---|---|
Initial period of 6 years | 12% | 2% per year |
1re extension of 3 years | 6% | 2% per year |
2e extension of 3 years | 3% | 1% per year |
Initial 9-year commitment
Rate | Distribution of the tax reduction | |
|---|---|---|
Initial period of 9 years | 18% | 2% per year |
Extension of 3 years | 3% | 1% per year |
Other acquisitions
Acquisition before 2023
Initial commitment of 6 years
Rate | Distribution of the tax reduction | |
|---|---|---|
Initial period of 6 years | 12% | 2% per year |
1re extension of 3 years | 6% | 2% per year |
2e extension of 3 years | 3% | 1% per year |
Initial 9-year commitment
Rate | Distribution of the tax reduction | |
|---|---|---|
Initial period of 9 years | 18% | 2% per year |
Extension of 3 years | 3% | 1% per year |
Acquisition in 2023
If the dwellings do not meet the criteria laid down by the Pinel+ scheme, the tax reduction rates are reduced.
The rates are as follows:
Duration of the commitment | Rate |
|---|---|
6 years | 10.5% |
9 years | 15% |
12 years | 17.5% |
Acquisition in 2024
If the dwellings do not meet the criteria laid down by the Pinel+ scheme, the tax reduction rates are reduced.
The rates are as follows:
Duration of the commitment | Rate |
|---|---|
6 years | 9% |
9 years | 12% |
12 years | 14% |
FYI
The rules are different overseas.
To fill your tax return, you can consult the following documents:
- Fiches de l'Anil on the device Pinel
- Explanatory leaflet
- Income Tax Return Brochure (indication of documents to be provided or retained).
Duflot
You benefit from a tax reduction if you are domiciled in France and have made rental real estate investments, provided that you meet conditions related to the tenant and the rental. The tax reduction, called Duflot, shall apply to investments made January 2013 to August 2014.
Types of acquisitions
The tax reduction relates to the following goods:
- New housing
- Housing in future state of completion
- Housing that you build
- Old housing undergoing renovation work (which represents at least 25% of the total cost of the operation).
- Housing undergoing rehabilitation work
- Premises converted into residential housing.
Warning
The tax reduction applies to a maximum of 2 dwellings per year.
Period of investment
The tax reduction concerns transactions carried out January 2013 to August 2014.
Location of the accommodation
The dwelling must be located, at the time of the investment, in zone A or B1.
It may also be located in zone B 2 if there is a particular need for rental housing.
Since 1er July 2013, this extension requires the issuance of a State approval.
You can check the area of your investment with this simulator:
Level of energy performance
The dwelling must comply with an overall energy performance level depending on the type of acquisition.
Type of accommodation | Energy performance level required |
|---|---|
New or to be built | Thermal regulation RT 2012 (or BBC 2005 label in case of building permit filed before 2013) |
Requiring work | Label HPE renovation 2009 or label BBC renovation 2009 |
Warning
Overseas, different rules apply.
The tenant cannot be your child or parent and must not belong to your tax home.
Sound reference tax income shall not exceed the regulatory ceilings.
Metropolis
Composition of the tax household | Zone Aa | Zone A | Area B1 | Area B2 | Area C |
|---|---|---|---|---|---|
Single person | €43,953 | €43,953 | €35,825 | €32,243 | €32,243 |
Couple | €65,691 | €65,691 | €47,842 | €43,056 | €43,056 |
+ 1 dependent | €86,112 | €78,963 | €57,531 | €51,778 | €51,778 |
+ 2 dependants | €102,812 | €94,585 | €69,455 | €62,510 | €62,510 |
+ 3 dependants | €122,326 | €111,971 | €81,705 | €73,535 | €73,535 |
+ 4 dependants | €137,649 | €126,001 | €92,080 | €82,873 | €82,873 |
Increase per additional dependent | + €15,335 | + €14,039 | + €10,273 | + €9,243 | + €9,243 |
Overseas
Composition of the tax household | Overseas Department (Dom) | Saint Martin Saint Pierre and Miquelon | French Polynesia New Caledonia Wallis and Futuna Islands |
|---|---|---|---|
Single person | €32,602 | €32,602 | €34,607 |
Couple | €43,539 | €43,539 | €46,213 |
+ 1 dependent | €52,358 | €52,358 | €55,573 |
+ 2 dependants | €63,207 | €63,207 | €67,090 |
+ 3 dependants | €74,354 | €74,354 | €78,921 |
+ 4 dependants | €83,795 | €83,795 | €88,843 |
Increase per additional dependent | + €9,354 | + €9,354 | + €9,928 |
The accommodation must be rented as main dwelling.
It must be rented no later than 1 year after the completion of the building or after its acquisition.
The minimum duration of the lease commitment is 9 years.
The monthly rent must not exceed, excluding charges, the following ceilings:
Metropolis
Location of the accommodation | Monthly rent ceilings per m² | |
|---|---|---|
2024 | 2025 | |
Zone Aa | €18.89 | €19.51 |
Zone A | €14.03 | €14.49 |
Area B1 | €11.31 | €11.68 |
Areas B2 and C (on approval) | €9.83 | €10.15 |
Overseas
Location of the accommodation | Monthly rent ceilings per m² | |
|---|---|---|
2024 | 2025 | |
Guadeloupe | €11.65 | €12.02 |
The Meeting | €11.65 | €12.02 |
Mayotte | €11.65 | €12.02 |
French Guiana | €11.65 | €12.02 |
Martinique | €11.65 | €12.02 |
Saint Martin | €11.65 | €12.02 |
Saint-Pierre and Miquelon | €11.65 | €12.02 |
French Polynesia | €14.28 | €14.18 |
New Caledonia | €14.28 | €14.18 |
Wallis and Futuna Islands | €14.28 | €14.18 |
Rent ceilings vary depending on the surface of the dwelling by application of a multiplier.
The ceilings may be reduced to take account of the specificities of local rental markets.
Ceiling
The tax reduction is calculated on the cost price of the acquired dwelling.
The tax reduction is calculated up to the following 2 ceilings:
- €300,000 per person per year
- €5,500 per m² of living space.
You must also consider the overall cap on tax benefits.
Rate of tax reduction
The rate is 18% the amount of the investment.
The tax reduction is spread over 9 years (2% per year for 9 years).
Example :
For an investment €300,000.
The tax reduction is €6,000 per year [(18% x €300,000 /9].
FYI
The rules are different overseas.
To fill your tax return, you can consult the following documents:
- Anil data sheets on Duflot devices
- Explanatory leaflet
- Income Tax Return Brochure (indication of documents to be provided or retained).
Who can help me?
Find who can answer your questions in your region
For general information
By phone:
0809,401,401
Monday to Friday from 8:30 am to 7 pm, excluding public holidays.
Free service + price call
To contact the local service managing your file
Tax department (treasury, tax department...)
Tax reduction scheme
Rent and Resource Limits
Geographical areas characterized by an imbalance between the supply and demand of housing (municipalities classified as zone B2)
Municipalities with a significant imbalance between supply and demand of housing (classified in areas A and B1)
Designation of geographical areas A bis, A, B1, B2 and C
Thermal characteristics of new buildings and new parts of buildings
FAQ
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Ministry of Finance
National Agency for Housing Information (Anil)
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Ministry of Finance
Ecological Transition Agency (Ademe)