"Pinel" scheme: tax reduction for intermediate rental investment with a 6, 9 or 12-year commitment
Article 5 of the 2015 Finance Act reshapes the tax reduction for intermediate rental investment (Article 199 novovicies of the General Tax Code, the "Duflot" scheme), renamed "Pinel": the investor chooses a six-year rental commitment (12% reduction on the cost price) or a nine-year one (18%), extendable by three-year periods (+6% then +3% for an initial six-year commitment, +3% for nine years), i.e. up to 21% over twelve years. Renting to a parent or child becomes possible for investments made from 1 January 2015. The other provisions apply to purchases, constructions and subscriptions made from 1 September 2014.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
Individuals buying a new home to rent it under rent and tenant-income caps get a tax reduction that depends on the rental period. According to the impact assessment, the Government expected 40,000 homes in 2014 and 50,000 in 2015 and 2016; the additional cost of the reform is estimated at €7m in 2016 and €33m in 2017.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Possible referral to Constitutional Council
Décision de conformité / censure partielle
President of the Republic signature
Publication au Journal officiel
National Assembly has the final say
Si échec CMP
Debate and vote
Debate and vote
Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)
Council of Ministers
Validation interne
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration