Investment

The New Alternatives to the Pinel Scheme

Since January 1st, 2025, the Pinel scheme which allowed investors to benefit from tax reductions when buying new-build properties has been closed to new participants.However, rental property investment still offers several attractive tax incentives. First, the Denormandie scheme: this program applies to renovated older properties located in designated “Cœur de Ville” areas or within urban revitalization agreements. It grants a tax reduction of 12% over six years, 18% over nine years, or 21% over twelve years, up to a maximum investment of €300,000.

Another option is Loc’Avantages: renting an existing property at a reduced rent to low-income households for six years entitles the owner to a tax reduction ranging from 15% to 65%, depending on the rent level.

Finally, the Intermediate Rental Housing scheme (Logement Locatif Intermédiaire, LLI) — now accessible to private individuals through an SCI (real estate investment company) — allows investment in new-build or off-plan properties with a reduced VAT rate of 10% and a tax credit equivalent to the property tax, for up to 20 years.

The Pinel scheme may be ending, but fiscal incentives remain, each with its own eligibility criteria, geographic zones, and limits.