The Pinel Outre-mer law is a tax measure introduced by the French government to encourage real estate investment in overseas departments and communities. Inspired by the Pinel law in metropolitan France, this policy aims to boost the real estate market in these remote regions and encourage local economic development.
The Pinel Outre-mer law offers attractive tax incentives for investors who buy new or VEFA (VEFA in future state of completion ) property in the French overseas departments and territories to rent out. Introduced on January 1, 2013, the Pinel Outre-mer law offers a highly attractive tax reduction.
The tax benefits offered by the Pinel Overseas Law are significant. They enable you to benefit from an income tax reduction of up to 28. 5% of the investment amount in 2023, spread over a period of 6, 9 or 12 years, depending on how long you rent out the property. Versus 17.5% for classic Pinel in mainland France. The tax reduction is granted on completion of the work.
To benefit from these advantages, investors must meet certain conditions. For example, the property must be rented bare, as the tenant's principal residence, within 12 months of delivery or acquisition of the property, for 6, 9 or 12 years. The rent must also comply with ceilings set by geographical area.
2024 marks the last year to benefit from the Pinel Overseas scheme, which will expire on December 31, 2024. In 2024, rates will drop again:
At the same time, the Pinel Plus scheme, introduced in 2023, offers the same tax benefits as in 2022, allowing tax relief of up to 32% of the investment, provided certain criteria are met.
Pinel Plus has the same purpose and functions as the classic Pinel, but imposes more demanding energy performance, usage and comfort criteria on property developers.
