Property tax reductions
Denormandie
The tax reduction for buying and renovating an older home in a town centre.
Overview
The Denormandie scheme gives a tax reduction for buying and renovating an older home to let, in towns whose centres are losing residents.
The buyer of an older home in an eligible town carries out works amounting to at least 25% of the total cost of the operation. The home is then let unfurnished as a main residence for six, nine or twelve years, within rent and tenant-income ceilings. The tax reduction is calculated on the cost price: 12%, 18% or 21% for six, nine or twelve years, within limits of €300,000 and €5,500 per square metre. The scheme has been extended until 31 December 2027.
How it works
Purchase and works
Older home, works of at least 25% of the total cost
Unfurnished letting and reduction
Six, nine or twelve years, reduction spread over the period
End of commitment
Property kept, let or sold
Key points
Strengths
- Open to older property (the Pinel scheme was limited to new-build)
- Town centres undergoing regeneration
- Can be combined with other local schemes
- Extended until 31 December 2027
Points to watch
- Works to coordinate, with a risk of cost overruns
- Restricted list of towns
- Rental demand sometimes weak
Who it is for
The Denormandie suits investors prepared to manage works in a medium-sized town, who care about the property's use value as much as the reduction. The local rental market should be studied before choosing the scheme.
Worked illustration
Example based on assumptions
Assumptions: an investor buys an older home for €150,000 in an eligible town and carries out €50,000 of works, or 25% of the total cost. For a twelve-year commitment, the reduction is 21% of €200,000, or €42,000 spread over twelve years (€3,500 a year). The cost price taken into account is capped at €300,000 and €5,500 per square metre.
Regulatory information
This sheet is a general information document of a commercial nature. It constitutes neither personalised investment advice, nor a recommendation, nor a solicitation, and it is not a key information document. Any decision requires a prior analysis of your situation by a duly authorised professional. Investments carry a risk of capital loss. Past performance is no guide to future performance. Taxation depends on each person's situation and may change.
The tax advantage depends on strict compliance with the legal conditions (duration, ceilings, zoning, tenants, use). Failure to comply leads to its recovery, with late-payment interest. Except where stated, it falls within the overall cap on tax advantages. Risk of capital loss on the underlying asset, limited liquidity during the commitment and exposure to changes in tax law. An operation should be assessed on all its features, including the tax reduction.
Complaints and mediation
Any complaint may be sent to ASTERALE, 4 allée Django Reinhardt, 94110 Arcueil, France, or to sebastien.bailly@asterale.fr. Failing a satisfactory reply within two months, you may refer the matter to the competent mediator. For financial investment advice: the AMF Ombudsman (Médiateur de l'AMF), 17 place de la Bourse, 75082 Paris Cedex 02 (www.amf-france.org/fr/le-mediateur). For insurance broking and intermediation, banking and payment services intermediation and property transactions: ANM Conso, 2 rue de Colmar, 94300 Vincennes (www.anm-conso.com, contact@anmconso.com).
Information sheet updated on 6 October 2026. Download the sheet (PDF)
Book a meeting
The first meeting, of about an hour, is used to check whether this scheme has a place in your wealth.