Rental real estate: this little -known tax reduction from which you can benefit until 2027

The Denormandie rental investment system, equivalent to the Pinel in the old one, remains in force until the end of 2027, while the National Assembly had wanted to remove it from December 31, 2026, during the 2025 budget examination .

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While the Pinel rental investment system in the new one died on December 31, 2024, you have a little time to enjoy its counterpart in the old one, the Denormandy. This tax reduction remains well in force until December 31, 2027, while the National Assembly wanted to end it on December 31, 2026, when examining the finance bill for 2025. The deputies had Adopted, at the end of October, a amendment from the government to the draft budget for 2025 which “Tightened” The Denormandy of the words of the Minister of Public Accounts at the time, Laurent Saint-Martin.

A recent mission of the General Inspectorate of Finance “Not having concluded in efficiency” Denormandythe Barnier government wanted to bring back the end of this tax aid of December 31, 2027 to the December 31, 2026. “A completely reasonable extinction”had approved the general rapporteur of the budget in the National Assembly, Charles de Courson, Denormandy having benefited in 2023 to “Only 880 households (tenants), at a cost of 10 million euros”.

Renovation must represent 25% of the price of the property

But the National Assembly then rejected the draft budget for 2025 and this amendment was not taken up by the Bayrou government, which succeeded the Barnier government after the latter’s censorship by Parliament. As a reminder, Denormandy, which has existed since 2019, gives you the right to a tax reduction on income, representing 9% to 21% of the price of the property (cost of renovation work included), if you buy old accommodation to rent it between 6 and 12 years old, naked, as a main residence, and by committing you to renovate it. A renovation whose cost must represent at least 25% of the total amount of the real estate operation and meet one of the following conditions: Improve the energy performance of housing of at least 20 to 30 %; Understand at least two works among the change in the boiler, the production of hot water, the insulation of the roof, the walls or the windows; Create a new living area like a terrace.

In addition, rent must not exceed certain ceilings, the tenant must not belong to your tax household and his reference tax income cannot exceed certain thresholds. Finally, the accommodation must be located in very specific places. Namely a municipality concerned by the national revitalization plan for medium -sized centers “City Heart Action», Or a municipality having signed a territorial revitalization operation agreement.

Degraded condominiums always included Denormandie

The degraded habitat law of April 9, 2024, which had extended Denormandy until December 31, 2027, also extended it to investments made in condominiums in great financial difficulty. The government’s amendment to the PLF 2025, adopted at the end of October, abolished this extension of the system to degraded condominiums, the mission of the General Inspectorate of Finance having “Return its difficulties in responding to the challenges of condominiums in difficulty”. This amendment was not taken up by the Bayrou government either.