Pinel Law Overseas Territories

The tax reduction is 23%, 29% or 32% of the purchase amount, with a total cap of €300,000 and two Pinel Overseas Territories properties per year, depending on the rental period. This can be 6, 9 or 12 years. For example: for a property of €300,000, the Pinel DOM-TOM reduction is €87,000, spread linearly and equally over 9 years: €9,666/year.

To benefit from the tax advantages of the Pinel Law Overseas Territories, certain conditions must be met. The property must:

• Be purchased new, off-plan (VEFA) or refurbished
• Meet the latest thermal standards, RT 2012 label (thermal characteristics and energy performance)
• Be completed within 30 months of the date of signing the notarised deed
• Be rented for at least 6 years (9 or 12 years possible) as the tenant’s main residence
• Be put up for rent within 12 months following the building’s completion date

The property must also meet the following conditions:

• A cap of €5,500/m² of living area, increased by veranda areas up to a limit of 14 m² per dwelling
• Be located in an eligible Pinel zone
• Comply with an investment cap in the French Overseas Territories (DOM-TOM) of €30,600 or 11% of total income
• Comply with rent caps and the tenant’s income limits