Who can benefit from the Pinel Outre-Mer law?
Since January 1, 2015, the Pinel Outre-mer scheme has been open to all individuals purchasing a property (new or in future state of completion) and domiciled in France.
The law also concerns Real Estate Companies (SCI) not subject to corporation tax. In this case, the taxpayers of an SCI can benefit from a tax reduction and have the possibility of buying in joint possession. Everyone then benefits from a tax exemption proportional to their personal investment.
Which areas are affected by the Pinel Overseas Law?
The Pinel Outre-mer law is a real estate tax system dedicated exclusively to overseas territories. These The latter are divided into two zones, which respectively contain the following territories:
- Martinique, Guadeloupe, Reunion, Guyana, Mayotte, Saint-Martin and Saint-Barthélemy.
- French Polynesia, New Caledonia, Saint-Pierre-et-Miquelon, Wallis-et-Futuna.
From when can one benefit from the tax exemption linked to the Pinel Outre-mer law?
The tax reduction linked to the Pinel Overseas Law is granted from the year of acquisition or completion of the lodging. Note: since the creation of the withholding tax, the tax-exempt amount is paid in two parts (one in January and the other in August.
To be able to take advantage of this real estate tax system, you must also respect the rental limit housing. The latter is established at 12 months following the acquisition of the property or the completion of the program. Once this deadline exceeded, tax exemption is no longer possible.
Can you make several rental investments under the Pinel Overseas law?
The Pinel Outre-mer scheme allows you to invest in a maximum of 2 homes per year, provided that the total amount investments does not exceed €300,000 and €5,500 per square meter of living space.
Furthermore, the Pinel Outre-mer law is compatible with other measures allowing you to obtain advantages tax in case of rental investment. It also entitles you to a ceiling of tax loopholes of €18,000 per year.
In other words, it is quite possible to combine several sources of tax exemption Let's take the example a taxpayer employing a personal service professional and having invested in a mutual fund investment in innovation. Now imagine that he benefits from an annual tax exemption of €9,500, returning just within the overall tax loophole cap of €10,000.
Despite everything, the taxpayer can perfectly buy real estate within the framework of the Pinel Outre-mer law, even if his tax exemption increases, since he will benefit from an overall cap on tax loopholes at €18,000.
What happens at the end of the rental commitment?
Once the rental commitment is over, you have the choice between reselling your property or keeping it, whether to occupy it or continue to rent it. However, you no longer benefit from any tax advantages.
Note: if you carry out an early resale of the accommodation, before the end of the rental commitment, your tax benefit is automatically withdrawn. The tax reduction you have benefited from in the last years must also be reintegrated into your annual property income.
Can you rent accommodation to a family member under the Pinel Outre-Mer law?
With the Pinel Outre-mer scheme, it is quite possible to rent the property you have acquired to a member of your family, whether a descendant or an ascendant. However, all conditions usual rules must be respected in order to be able to benefit from the tax reduction: ceilings on rent, ceilings on resources, etc.
