To the niche!
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The Court estimates the total cost of this tax niche to aid rental investment, which ends at the end of the year, at 7.4 billion euros. After forty years of successive tax aids, the removal of any incentive mechanism to take over will occur in the midst of a real estate crisis.
Curtain. On December 31, 2024, a tax advantage will expire. the possibility of deducting from income tax part of the cost of acquiring a home intended for rental, provided that it is located in certain areas, and to respect a rent ceiling. After ten years of existence, the Pinel system (named after Sylvia Pinel, Minister of Housing in the Valls government) was deemed too expensive by Macron’s government. The Court of Auditors, observer and controller of public spending, has therefore chosen to take stock of this tax niche and assess its effectiveness.
The first difficulty was to have precise figures. Pierre Moscovici, the first president of the Court of Auditors, stressed during a press conference on Thursday 5 September that this was a system “difficult to measure, for which no objective has been set since 2017 and no figures available”. The audit institution has therefore examined the data provided by the General Directorate of Public Finances of the Ministry of the Economy. It emerges that in nine years (2014-2023), the Pinel tax advantage has been implemented for the construction of approximately 245,000 housing units (there are no precise figures). The cost to public finances represented 7.4 billion, or 30,000 euros on average per housing unit. For Pierre Moscovici, this system has “effectively mobilized savings towards housing”without however being able to
