What are the rental conditions to enjoy the Denormandie?

The Denormandie system is not limited to purchase and work: it also imposes rental conditions to be met in order to benefit from the tax reduction.

Rental duration: the property must be rented as the tenant’s main residence for at least 6, 9 or 12 years.

Type of rental: the rental must be naked (unfurnished).

Rent ceilings: the rent must comply with the ceilings set by decree, which vary according to the geographical area (zones Pinel: A, Abis, B1, B2).

Income ceilings for tenants: only households with incomes below certain thresholds can rent out the dwelling. These ceilings are also defined by area and by household composition.

👉 These conditions aim to ensure that renovated housing benefits modest and middle-income households, while ensuring affordable rent.

In practice, this means that an investor must check two things:

That his property is located in an eligible area.

That he complies with the imposed rental conditions (rent and resource ceilings).

Failure to comply with these rules results in the loss of the tax benefit.

In conclusion, the Denormandie system offers a rare opportunity to reduce taxes by investing in renovated old buildings, but it requires rigor in the project’s setup. Support by a professional (notary, investment advisor, wealth manager) is strongly recommended to secure the operation.