What is the Denormandie device and who is it for?

The Denormandie scheme is a tax mechanism set up by the State to encourage investment in old real estate with works. Inspired by the Pinel law, it aims to revitalize degraded city centers by encouraging private investors to renovate outdated housing to put them back on the rental market.

👉 Concretely, an investor buys a former real estate property located in a municipality eligible for the 'Action cœur de ville' program or having signed an Opération de revitalisation du territoire (ORT). He must then carry out renovation work representing at least 25% of the total price of the operation (purchase + work). In return, it benefits from a significant tax reduction.

The Denormandie is mainly aimed at:

To individual investors wishing to reduce their taxes.

To people who want to diversify their heritage with rental stone.

To highly taxed taxpayers seeking an effective tax optimization tool.

The main benefit is a tax reduction of up to 21% on the amount invested, spread over 6, 9 or 12 years. Thus, for an investment of €200,000, a taxpayer can save up to €42,000 in tax.

In addition to the tax interest, the Denormandie system allows for the valorization of an old property by improving its energy performance and comfort. In the long term, the owner therefore holds an attractive heritage asset, renovated and adapted to the rental market.

Finally, the device contributes to a broader objective: the revitalization of downtown areas. Many eligible municipalities suffered from vacant and degraded housing. Thanks to these incentives, new inhabitants return to settle, which boosts businesses and local life.

In summary, the Denormandie law is aimed at investors seeking a double benefit:

✅ A substantial tax cut.

✅ The constitution of a renovated real estate heritage in areas with high potential for redevelopment.