It might turn off sooner than expected. The Pinel real estate tax exemption system, which has been very successful with individuals since its creation in 2015, is in the sights of the majority. The finance bill for 2023 (PLF), currently under discussion at first reading in the National Assembly, should sound the death knell for Pinel a year earlier than expected, from the end of next year.
” There will be amendments to bring forward the deletion at 1er January 2024instead of December 31, with a refocusing in 2023 “, thus entrusted to the Echoes, Tuesday, October 4, Jean-René Cazeneuve, the general rapporteur of the Budget at the National Assembly. As a reminder, its gradual disappearance is already on the program. From 1er next January, the tax reduction rates will increase to 10.5% over 6 years of rental, 15% over 9 years and 17.5% over 12 years (instead of 12%, 18% and 21%). Then, in 2024, they must fall to 9%, 12% and 14% according to the same rental durations. This latest version, which is not very interesting for the taxpayer, is therefore now in the hot seat.
A bad real estate investment?
The government does not hide it: it is hunting for tax loopholes ” inefficient “, as indicated in the press kit of the PLF. However, the Pinel device has already been criticized on many aspects. In a 2019 report, the General Inspectorate of Finance (IGF) denounced that it does not match the housing needs of cities. ” It is only weakly achieving its rent reduction target, says the IGF. (…) The automaticity of the tax reduction ignores the priorities of local housing policies, particularly in terms of fine location, number and types of housing “.
Worse, it’s not always a good real estate investment! ” The attractiveness of the tax reduction seems to mask in half of the cases a negative overall net return after 9 years, excluding the effect of the rise in real estate pricesreveals the IGF. This yield [décevant] is explained in particular by a 30% discount in the price of the old compared to the new “. Its only really positive point is to have kept the construction sector more or less afloat, which today fears a collapse in sales after its disappearance.
Not sure that this proposal will be accepted, even within the “complacent” majority. deputies The Republicansmembers of the Committee on Sustainable Development and Regional Planning, tabled an opposite amendment: maintain the Pinel system until December 31, 2024 with the current reduction rates, at their maximum, to compensate for ” the current collapse in sales of new homes (year-on-year in the first half of 2022, -27% in the individual and -15% in the collective), generating an inevitable housing crisis “.