The tax benefits under the PINEL law will be reduced starting January1, 2024. You can still take advantage of the best tax deduction rates by investing before the end of the year! [This program ended on December 31, 2024.]
Created in 2014 to encourage investment in rental properties, the government announced this summer that the PINEL program will end in 2025. The program provides tax breaks for the purchase of rental properties that meet certain criteria.
Until January1, 2024, the tax deduction rates will remain at 10.5%, 15%, and 17.5% of the amount invested for rental commitments of 6, 9, and 12 years, respectively. Starting at the beginning of the year, these tax deduction rates will therefore decrease to 9%, 12%, and 14% for the same lease terms.
Protect your assets by investing in real estate while reducing your taxes. You have until the end of 2023 to take full advantage of the PINEL law.
If you’d like to estimate the return on investment for one of Villes et Villages’ real estate programs, we can connect you with our tax advisor for a consultation. Contact us!
The criteria and zoning provisions of the PINEL Act
To qualify for tax breaks under the PINEL law, rental properties must meet several criteria. Some of these relate to the property itself (size, energy efficiency, etc.) and its geographic location. Specifically, the property in question must be located in an area where there is an imbalance between supply and demand.
This variation, which varies in degree, results in a classification and zoning system: A, B (B1, B2), and C. This system affects the income limits for tenants as well as the amount of rent. For example, the income limit for a couple of tenants must not exceed €58,831 in Zone A and €42,846 in Zone B1. As for rent, it must not exceed €13.09/m² in Zone A and €10.55/m² in Zone B1 (Source : ANIL).
Discover our selection of one- and two-bedroom apartments for investment under the PINEL program
At Villes et Villages, many apartments across several residential complexes are eligible for the PINEL law. Among them, CŒUR VILLAGE in Copponex, RIVESUD Sciez, and PRÉCHARMANT in Versonnex are located in Zone B1. CHROMATIK in Saint-Julien-en-Genevois, meanwhile, is located in Zone A, and the residences in Thonon-les-Bains (LE DUO and LE TRIO) have just benefited from a zoning revision, moving from Zone B1 to Zone A, which significantly improves the investment’s profitability!
The carefully selected locations—cities, towns, or neighborhoods—and the high quality of construction, amenities, and finishes in Villes et Villages’ real estate developments make them sound long-term investments for your portfolio.
Here is a selection of apartments that are particularly well-suited for a PINEL purchase:
LE DUO | One-bedroom apartment in Thonon-les-Bains – For PINEL investment ( Zone A)
LE TRIO One-bedroom apartment in Thonon-les-Bains – For PINEL investment ( Zone A)
LE CHROMATIK | Two-bedroom apartment in Saint-Julien-en-Genevois – For PINEL investment ( Zone A)
RIVESUD One-bedroom apartment in Sciez-sur-Léman – For PINEL investment ( Zone B1)
PRÉCHARMANT | 2-bedroom apartment in Versonnex – For PINEL investment ( Zone B1)
PRÉCOSY One-bedroom apartment in Villy-le-Pelloux – For PINEL investment ( Zone B1)
CŒUR VILLAGE | One-bedroom apartment in Copponex – For PINEL investment ( Zone B1)
