Denormandie Law 2019: conditions and amount of the new system
As part of the fight against insalubrity, the Ministry of Town and Housing has launched the Denormandie device, the conditions of application of which were recently specified in Decree No. 2019-232 of March 26.
Denormandie Law 2019: eligibility conditions
This new Denormandie device is a variation of the Pinel Law allowing to benefit from a tax reduction when buying and renovating old property for rental purposes. It is reserved for individuals and of course subject to conditions:
The property must be located in an eligible municipality : either because it benefits from the Coeur de Ville Action plan, or because it is one of the signatories of an Operation to revitalize its territory (list below) ;
- the amount of rent as well as the resources of tenants must be capped, in order to facilitate access to housing for a certain part of the population
- the amount of the renovation work must represent at least 25% of the cost of the operation (purchase of the property, notary fees and works), within the limit of 300,000 euros
Denormandie device: the uprights
The Denormandie Law 2019 applies in the context of the acquisition of old housing, house or apartment, between January 1, 2019 and December 31, 2021. The property must then be rented out bare and unfurnished for a period of period of 6, 9 or 12 years.
The tax allowance, which is based on the cost price of the accommodation (acquisition, notary fees and works included) may reach:
- up to 21% for a rental commitment of 12 years
- 18% for 9 years
- 12% for 6 years
The primary purpose of the new Denormandie system is to promote the revitalization of town centers and the often dilapidated buildings there. The nature of the work eligible for the tax reduction is thus strictly regulated. It must be either energy performance improvement work , or insulation , heating or boiler work .
An investment in the Denormandie 2019 law allows you to benefit from tax reductions of up to 63,000 euros and has many advantages: the eligible cities are more numerous (244 currently), housing often better placed than housing under the Pinel Law, since located in the city center and above all, allow faster acquisition.
New Denormandie device: what is changing
The conditions of application of the Denormandie 2019 law have also been redesigned: it is possible to rent the property to its ascendants and descendants.
More flexible than the Pinel Law and applicable to old housing located in a city center, this new property tax exemption system has many advantages!
The 244 cities eligible for the Denormandie scheme