In order to make some savings and pay less income tax, it is possible toinvest in pinel law. The purpose of this law is to reduce taxes by investing in rental property. However, you must be a French taxpayer to be eligible.
The tax reductions will be up to 21% of the amount invested within the limit of 63000 euros spread over five years. But for that, it will be necessary that the good is rented during 12 years. It is indeed the duration of the lease which will determine the percentage of reduction.
Investing in Pinel lawHow to do it?
Another thing to know: these are reductions. It will not be possible to carry them over to the following year. When the amount of these reductions is higher than your tax, the difference will be lost. You will not be entitled to a refund either.
But to benefit from the Pinel advantagesThere are a few rules to follow:
- buy a new or old property with the aim of offering it for long-term rental, between 6 and 12 years. If necessary, work will be carried out before offering it for rent. It will be necessary to comply with a very precise thermal regulation
- the owner will be able to rent to relatives as well as to strangers
- the rent of the dwelling will not be freely fixed but will depend on the geographical area in which the property is located. In addition to its living space, of course!