November was marked by the validation by the National Assembly of the extension of two specific mechanisms: the Zero Rate Loan, commonly known, in France, as PTZ and the PINEL.

The end of these was initially scheduled for December 2021 but, due to the current economic situation and in particular the crisis we are going through, which hasn’t spared investors or constructors, the government has finally decided to extend them until 2022 in the 2021 finance law amendments. The goal of this extension is to support the construction sector.
An extension, yes, but with a few modifications:
The Zero Rate Loan allows you to partially finance the acquisition or construction of your primary residence, as its name suggests, without paying interest. Today, the conditions to be able to benefit from this financing are:

• Not having being owner for the past two years
• Not to exceed an income limit in year “N-2”, taking as a reference the year of publication of the loan offer.

The important modification of the PTZ will concern the income taken into account. Indeed, for greater consistency, it is no longer the resources for year “N-2” that will be taken into account, but those for the year of issuance of the loan offer.

Regarding the PINEL device, this tax exemption system allows you to benefit from a tax reduction when you make a rental investment in new buildings. This reduction is currently 12%, 18% or 21% depending on whether the property is rented for a respective period of 6 years, 9 years or 12 years. The device remains unchanged until 2022 and will be extended to 2023 and 2024 but with new conditions:

• Not all areas currently offering PINEL investments will be affected by this extension. Only promising areas with high demographic density will be concerned.
• For all new housing purchased or built in 2023, the tax reduction will be 10.5% and 15% for rental periods of 6 or 9 years
• For all new housing purchased or built in 2024, the tax reduction will be 9% and 12% for rental periods of 6 or 9 years.

And after?
Regarding the PTZ, the government has implied that it will be extended beyond 2022 but that further adjustments will be put in place.

For the PINEL device, its final end is now scheduled for 2024. The government's objective is, through the gradual reduction in the tax benefits provided for by this support, to lead to more efficient devices. A report should be presented on this subject on March 30, 2021.

If you would like to benefit from our expertise, don’t hesitate to make your consultation request on our website!

Wealth A7, always by your side to give life to your desires!