Pinel: extending the rental period by 3 years, how it works

Yes, the Pinel rental commitment can be extended for periods of 3 years, without the total tax benefit exceeding 12 years. An initial 6-year commitment can be extended a maximum of two times. An initial 9-year commitment can be extended only once. The extension is not automatic: it must be declared in writing on the income tax return for the year in which the current period ends.

This page deals with the extension of the Pinel tax incentive for individual property owners. It does not cover the exact section of the tax return, the deadline for extension, or the extension after a move abroad for investments made from 2019 onwards. These three points are explained below.

What the rule says

At the end of the initial commitment period, the owner can extend the tax reduction for successive three-year periods, provided the property remains rented for three-year periods under the required rent and income conditions. The relevant legislation is BOFiP BOI-IR-RICI-360-60, version in effect since August 22, 2024. It refers to Article 199 novovicies, VII bis, of the French General Tax Code (CGI).

The BOFiP states that the benefit of the Pinel reduction "cannot therefore exceed twelve years".

The extension applies to Pinel investments made between 01/09/2014 and 31/12/2024. It does not apply to Duflot investments made between 01/01/2013 and 31/08/2014.

The rules of form, which cannot be rectified

• Three consecutive years. The extension can only be applied for a period of three consecutive years.
• A precise starting point. The three-year period begins on the day following the expiry of the initial commitment. The second period begins at the end of the first. The calculation is done from date to date.
• An express extension. It cannot be tacit, anticipated, or retroactive. It must be expressly stated in writing.
• An observation made in the tax return. For an individual, the extension is recorded when the income tax return for the year in which the current period ends is filed. A note is attached, including the tenant's identity, address, rent, calculation method, and supporting documents. This note also includes a commitment to rent the unfurnished property as the tenant's primary residence (BOI-IR-RICI-360-60, § 330).

Companies and SCPIs have their own filing rules specific to their ownership structure; these are not detailed here.

The rates of the extension

The rates depend on the year of investment and the property. They are taken from BOI-IR-RICI-360-60, paragraph 40, which begins with "Whether eligible investments are made in mainland France or overseas." According to this paragraph, the extension rates do not vary depending on the property's location.

The reduction in rates for 2023 and 2024 therefore also affects the extension. It does not apply to housing in priority urban policy areas or to housing of a quality level exceeding regulations.

These percentages apply to the cost price of the housing, capped at €5,500 per m² of living space, up to a limit of €300,000 per taxpayer per year.

What this does over the total duration

Adding the initial rate and the extensions gives the total over 12 years:

This sum is a calculation from this page, based on the rates above and the initial rates for mainland France (12 %, 10.5 % and 9 % for six years). The initial overseas rates are not included here.

How is the reduction allocated?

The additional tax reduction is applied in thirds to the tax due for the year of the extension and the two following years. For an extension of 6 years, this amounts to 2 years per year; for an extension of 3 years, 1 year per year. If the portion applicable in a given year exceeds the tax due, the balance cannot be applied to the tax due in subsequent years, and the unapplied portion is not refundable (BOI-IR-RICI-360-60, § 60).

Numerical example (fictitious profile)

Situation. In 2023, Marc and Hélène bought a new 50 m² apartment outside of a priority neighborhood, without any superior quality features. The purchase price was €250,000. They committed to renting it out for six years. The rent cap of €5,500 per m² (€275,000 for 50 m²) and the €300,000 cap do not limit their rental income: it remains at €250,000. Their six-year commitment is now coming to an end.

Issue. Should the extension be granted twice, and what additional tax reduction would this represent? Hypothetical scenario: their income tax before this extension is €3,000 per year for the six-year extension period (years 7 to 12). They have no other tax reductions or credits. This example does not simulate the application of the initial reduction (years 1 to 6): the amounts shown are before any tax limitations.

Strategy. Compare the initial reduction, the two extensions, and what their tax allows to be deducted during the extensions.

Result.

With a tax liability of €3,000 per year during the first extension, only €3,000 of the €3,750 allocated for each third is deductible. The difference of €750 per year, or €2,250 over the three years, is not carried forward to subsequent years and does not result in a refund. The additional amount deducted for the first extension is €9,000 out of €11,250. The second extension is fully deducted (€2,083.33 per year, less than €3,000), totaling €6,250. In total, the two extensions result in a tax reduction of €15,250 under these scenarios.

These profiles are fictitious. The calculation assumes a constant tax of €3,000 over years 7 to 12, no other reductions, no overall cap, and does not simulate the application of the initial reduction. It does not predict your situation and does not guarantee any result.

This could cause you to lose the profit

A breach observed during an extended period does not invalidate the benefits of the initial period or those of previous extensions. Conversely, if the reduction of the initial period is challenged, further extensions are no longer possible.

If you leave France

For investments made before January 1, 2019, the BOFiP (French Official Tax Bulletin) makes the extension conditional upon tax residency in France for the year in which it is exercised. A property owner whose tax residency is abroad that year does not meet this condition.

For investments made from January 1, 2019, onwards, moving abroad does not invalidate the tax benefit already obtained. This page does not specify whether an extension is still possible in this case; the text does not explicitly state this. The rule depends on your situation and should be verified before making a decision.

What this page doesn't say

• The deadline for extension. It is derived from the end date of each period. It depends on your investment year and is calculated based on your deed and lease.
• The declaration box. The BOFiP refers to a note attached to the income tax return, without a box number in the pages read.
• Initial overseas rates. The table of totals over 12 years is based on the initial rates of metropolitan France; those of overseas territories are not included here.

What changes depending on your situation

• The investment year : before 2023, 2023 or 2024, with different rates.
• The type of accommodation : priority area or higher quality level, or other housing.
• The initial commitment : 6 years (two possible extensions) or 9 years (one only).
• Your tax for the three years in question : the balance that exceeds the tax due is not carried forward.
• Your method of detention : directly, through a company or through SCPI units, with their own deposit rules.
• Your tax residence, if a move abroad is being considered.

The rule depends on your situation. No results are guaranteed.