Find out if your city is eligible for Pinel tax exemption

This summer, two new cities are eligible for tax exemption "Pinel" (named after the former Minister of Housing Sylvia Pinel, Ed): it is Angers (49) and Poitiers (86). It is an order published at the beginning of July in the Official Journal which announced it. The administration has modified the zoning used to classify the cities of France according to whether the market is tense (demand stronger than supply) or relaxed (demand weaker than supply). Thus, these two medium-sized cities have moved from zone B2, excluded from the device, to zone B1, which is eligible. Real estate developers will be able to offer residents tax-free rental investments.

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To find out if your city is eligible for the Pinel scheme, you can use this simulator (by clicking on this link) that the Ministry of Territorial Cohesion has just launched. It also allows you to calculate the maximum rent at which you can rent your home, to know the maximum income cap of your future tenants and to know the amount of the tax reduction you can benefit from.

Introduced in the 2015 Finance Act, the Pinel scheme was extended in January 2018 until December 31, 2021. The list of cities where the purchase of a home entitles you to the tax benefit is now reduced to strained. In other words, the areas Abis, A and B1. Zones B2 and C (relaxed areas) are excluded. In these cities, the government has preferred to revitalize the city centers rather than maintain tax exemption schemes. Left to cause the decline of the construction of single-family homes. A choice "assumed" by the Minister of Housing. "The city center was going downhill. Everyone was going to these new detached houses. (Inside the city), we do not want vacant housing or housing that is impoverishing. This is not the company we want, "said Julien Denormandie on BFM Business.

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On the other hand, the conditions of application have not changed. Thus, an individual who wants to buy or build a new home can benefit from a reduction in income tax, spread over six, nine or twelve years, amounting respectively to 12, 18 or 21% of the price of purchase of housing (23, 29 or 32% in overseas communities and departments). In exchange, the owner agrees to lease the property for a period of six, nine or twelve years and to apply a rent that "meets a cap generally lower by about 20% market rents," says the Ministry of Territorial Cohesion. Each owner can only carry out this type of operation for a maximum of two dwellings per year, within the limit of a total investment of 300,000 euros.