The 2021 Finance Act extends the Pinel scheme until 31 December 2024

The Pinel law is a property tax relief scheme designed to encourage the construction of new housing in areas of high demand.
Within certain limits, it allows you to deduct from your income tax between 12% and 21% of the purchase price of the property. From 2023, the rates will be gradually reduced.

Property investors interested in residential lettings can benefit from it when they buy a new, fully renovated or refurbished flat, or one sold off-plan (VEFA), subject to certain conditions:

• The property must be located in an area identified as a “high-demand area” (zone tendue)
• It must meet a specific level of energy performance
• It must be let as the tenant's main residence
• It must be let for 6, 9 or 12 years
• Rents must not exceed a set ceiling
• Tenants must not exceed the defined income ceilings.

NB. The Pinel law applies only to French tax residents, and is limited to two properties per year.