What are the tax advantages of the Denormandie for an investor?

The main advantage of the Denormandie system lies in its attractive tax advantages. Like the Pinel law, it allows to benefit from a tax reduction proportional to the rental commitment duration.

Here is the details of the applicable rates:

12% tax reduction for a 6-year commitment.

18% for a 9-year commitment.

21% for a 12-year commitment.

These discounts apply to the total price of the operation (purchase + work), within the limit of €300,000 per year and €5,500/m 2.

Concrete example: an investor buys a former dwelling for €160,000 and carries out €40,000 in works, making a total of €200,000.

If he commits to rent for 9 years, he gets a tax reduction of €36,000 (18%).

For 12 years, the reduction climbs to €42,000 (21%).

👉 The Denormandie device is therefore particularly interesting for tax households with high income taxes.

Beyond the tax aspect, investing in Denormandie also allows for:

Enhance its heritage through energy renovation and modernization works.

Rent more easily, because the renovated properties are attractive in the rental market.

Participate in the revitalization of old city centers, by responding to a real rental demand.

Note that the tax reduction falls within the ceiling of €10,000 in annual tax niches, an important element to take into account for investors already engaged in other schemes (Pinel, Censi-Bouvard, etc.).

In conclusion, the Denormandie system combines rental profitability and tax optimization. It is an opportunity to seriously consider if you wish to combine real estate tax exemption and renovation of the old one.