Denormandie: how to know if a municipality is eligible, and what changes with the extension to dilapidated co-owned properties

The Denormandie scheme doesn't apply everywhere: the property must be located in a municipality that meets the criteria outlined in the regulations. This page doesn't publish a list of municipalities. Verification is done using the official public service simulator, then by consulting the updated regulations. The official websites don't describe these criteria in the same way: we present them one by one, without selecting between them.

Since April 11, 2024, according to economie.gouv.fr, the scheme also covers investments in co-ownerships in great financial difficulty or located within the perimeter of an operation to requalify degraded co-ownerships.

This page addresses the municipality's eligibility, the extension to dilapidated co-owned properties, and the 25 % work test, with a numerical example. It does not cover the program's end date (the official pages consulted do not give the same date: this should be verified with the most up-to-date official source), the declaration forms, the list of municipalities, or the legal definition of a dilapidated co-owned property.

The criteria for the municipality, page by page

Four official pages describe the municipality criterion. They do not say exactly the same thing.

Two remarks about this painting.

• The BOFiP specifies that eligibility depends on the municipality, not on the perimeter of the ORT agreement. He writes that the scheme applies "regardless of the scope of the ORT agreement." He also stipulates a time limit for ORT municipalities, linked to the end of the agreement. The end date of the scheme should be verified with the most up-to-date official source: the version of the BOFiP (Official Bulletin of Public Finances) consulted (March 28, 2024) and other official pages do not give the same date, so we are not publishing one.
• The F35011 record does not list the municipalities. It provides the criteria and refers to the simulator.

Check a municipality

The starting point is the public service simulator, "Denormandie Zone." It tests two criteria: areas designated as "Action Cœur de Ville" (City Center Action) and areas designated as "ORT" (Territorial Revitalization Zone). It concludes either "This municipality is eligible for the Denormandie scheme" or indicates that it is not. It still needs to be tested on the municipality in question before any decision is made.

The simulator does not mention either the decree of March 26, 2019, or the rehabilitation need criterion. The rehabilitation need criterion is available on economie.gouv.fr, on fact sheet F35011, and in the BOFiP (Official Bulletin of Public Finances). The decree of March 26, 2019, is cited in fact sheet F35011, in its references, as the text relating to the list of municipalities, and by the BOFiP (list in the appendix). For a municipality not included in the simulator, this list should be consulted before making any decision. This page does not reproduce it.

Zoning A, B and C

Zoning A bis, A, B1, B2, and C is another classification system for municipalities. The decree of September 5, 2025, modified the classification of municipalities within these zones. According to economie.gouv.fr, its provisions apply to loan offers issued from September 30, 2025, onward, and this zoning is specifically used to determine eligible areas. The relevant section of the economie.gouv.fr page does not mention the Denormandie scheme; the link between this zoning and the municipality criterion should be verified with the source.

For leases signed in 2026, fact sheet F35011 gives the following monthly rent ceilings in metropolitan France, excluding charges:

The F35011 form refers to a simulator to find out if a city falls under the scheme, and to another to find out the zone in which the investment is located (A bis, A, B1, B2 or C).

Deteriorated condominiums

According to economie.gouv.fr, since April 11, 2024, the scheme also applies to investments in co-ownerships in great financial difficulty, or located within the perimeter of an operation to requalify degraded co-ownerships.

Two official pages formulate the condition differently:

• economie.gouv.fr: co-ownerships "in great financial difficulty", or within the scope of "an operation to requalify degraded co-ownerships"; ;
• service-public.gouv.fr (F35011): co-ownership "placed under provisional administration", or "included in the perimeter of an operation to requalify degraded co-ownerships (ORCOD)", with a version of national interest (ORCOD-IN).

economie.gouv.fr refers to Article 42 of Law No. 2024-322 of April 9, 2024, for this extension. We have not read this article, nor a legal definition of a deteriorated co-ownership, nor the corresponding article of the General Tax Code. The co-ownership in question should therefore be verified against the current text, with the property manager or notary, before the acquisition. The BOFiP (Official Bulletin of Public Finances) consulted for this page is the version of March 28, 2024, prior to April 11, 2024.

Conditions that still need to be validated

Once the municipality or condominium has been verified, the following checks remain:

• the works : at least 25 % of the total cost of the operation, completed no later than December 31 of the second year following the acquisition (economie.gouv.fr). The total cost corresponds to the cost price of the dwelling; work carried out by the taxpayer himself is excluded (BOFiP, BOI-IR-RICI-365-20, version of 27/08/2020); ;
• the ceilings : €5,500 per m² of living space (F35011; economie.gouv.fr expresses this limit differently: to be verified with the source), €300,000 per taxpayer per year and a maximum of two dwellings per tax year, including Pinel (BOFiP); ;
• the rate : 12 % for a 6-year commitment, 18 % for 9 years in metropolitan France (BOFiP, § 140). F35011 and economie.gouv.fr mention a longer commitment with a higher rate, which the BOFiP reviewed does not mention: we do not publish the duration or rate for this option; ;
• the overall cap tax advantages, which economie.gouv.fr asks to be taken into account.

For taxpayers no longer residing in France, impots.gouv.fr (page updated on 08/04/2026) indicates, regarding the tax reduction for rental investments (Pinel/Denormandie table on the same page), that for investments made since 2019, the taxpayer can benefit if they were residing in France on the date the investment was made. The tax credit after leaving France is not addressed here.

Numerical example (fictitious profile)

Situation. Samira plans to buy a 40 m² apartment for €120,000, including all acquisition costs, in a condominium located in a town she has verified using the simulator and in the relevant regulations. She anticipates €30,000 worth of renovations (including VAT) to be billed by a contractor. Her tax liability, from which the tax reduction can be applied, is a constant €2,600 per year (based on a hypothetical situation).

Issue. Do the works represent at least 25 % of the total cost, and what reduction is actually allocated?

Strategy. Calculate the share of work in the cost price, determine the minimum amount of work, compare the base to the ceilings, then distribute the reduction by sixths or ninths.

Result.

With €30,000 (including VAT) in renovation work, the share is 20 % units: the 25 % requirement is not met. The minimum is €40,000 (including VAT), as in the example from the BOFiP (acquisition at €120,000 all-inclusive, renovation work of at least €40,000 (including VAT). The base amount of €160,000 remains below the surface area ceiling (40 x 5,500 = €220,000) and below €300,000.

The BOFiP (French tax authority) is clear: the balance cannot be carried forward to subsequent years' taxes, and the unused portion is not refundable. In this case, €600 is lost each year.

This profile is fictitious. The amounts and annual tax are hypothetical. The calculation does not take into account rental income tax or the overall tax cap. It illustrates a mechanism and does not predict your specific situation.

What changes depending on your situation

• The municipality, and the criterion on which it is based (Action cœur de ville, ORT, need for rehabilitation).
• The condominium, if the property falls under this category: its status is verified through documentation.
• The cost price and the work, who decide on the test of the 25 % and the base.
• Your taxes for the coming years, which determines what is actually charged.
• Your tax residence, in case of departure from France.

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