Pinel Law Simulator 2026

The Pinel scheme allows property investors to benefit from an income tax reduction in exchange for renting out a new-build property for a minimum period of 6, 9 or 12 years. The property must be located in a high-demand zone (A bis, A or B1) and comply with rent and tenant income caps set by decree.

Since 2024, the reduction rates have been revised downward compared to the original scheme. In 2026, the applicable rates are 9% for 6 years, 12% for 9 years and 14% for 12 years. These rates apply to the cost price of the property up to a limit of 300,000 euros and 5,500 euros per square metre. The reduction is spread evenly over the commitment period.

The Pinel scheme remains an attractive tax optimization tool for heavily taxed individuals, provided the property location is well chosen and the net rental yield covers the expenses (mortgage, property tax, management, vacancy). The tax reduction falls within the global tax incentive cap of 10,000 euros per year.

To qualify for the Pinel tax reduction, several conditions must be met. The property must be new or purchased off-plan (VEFA), located in an eligible zone (A bis, A or B1), and meet current energy performance standards (RE 2020). The property must be rented unfurnished as the tenant's primary residence within 12 months of delivery.

Rent caps vary by zone: in zone A bis (Paris and inner ring), monthly rent cannot exceed 18.25 euros per square metre in 2026. In zone A (large metropolitan areas), the cap is 13.56 euros/sqm, and in zone B1 (mid-size cities), 10.93 euros/sqm. Tenant income is also capped based on household composition and geographic zone.

The investor is limited to two Pinel properties per year and a total investment capped at 300,000 euros per year. The price per square metre must not exceed 5,500 euros. Finally, the property cannot be rented to a member of the investor's tax household, but it can be rented to a parent or child outside the tax household.