As the Pinel scheme enters its final months, real estate investors are wondering: how can they continue to combine profitability with tax benefits without this cornerstone of rental investment?
Good news: the end of the Pinel law does not mean the end of opportunities. It simply calls for a change in strategy. Here's an overview of the best alternatives, tailored for a real estate market like Nice.
The end of the classic Pinel law: what remains?
Since January 1, 2025, the Pinel law—even in its improved "Pinel Plus" version—no longer applies to new investments. It’s time to turn to other financial and tax tools, often more flexible, more technical… and sometimes more profitable. A new era begins for rental real estate, based on the quality of the property, its location, and the sophistication of the tax structure.
Tax and real estate alternatives to consider
LMNP Status: Non-Professional Furnished Rental
LMNP allows investors to rent out furnished properties while benefiting from a highly favorable tax regime. Depending on the chosen option (micro-BIC or real), it's possible to significantly reduce—or even eliminate—rental income taxes. Depreciation of the property, furnishings, and charges leads to lightly taxed income.
In Nice, studios and one-bedroom apartments near universities, downtown, or tram lines are especially suited for this setup.
The Denormandie Law: renovate to save on taxes
Extended until the end of 2027, the Denormandie law targets investors looking to buy and renovate older properties in specific zones. It operates similarly to the Pinel law, offering up to 21% tax reductions in exchange for long-term rental commitments (6, 9, or 12 years).
This measure promotes the revitalization of aging housing and urban centers. Renovations must account for at least 25% of the total project cost (purchase + renovation) and significantly improve energy performance.
Although Nice itself is not covered by Denormandie, nearby towns like Grasse and Vallauris are. With Maison CINO’s interior architecture expertise, these properties can be transformed into high-value rentals.
Property Deficit: the savvy renovator’s tool
By investing in older properties with renovation needs, one can generate a property deficit—that is, deductible expenses exceeding rental income. A strong advantage for high-income taxpayers.
Tax-optimized REITs: invest collectively, manage passively
Real Estate Investment Trusts (SCPI in France) allow indirect real estate investments with tax perks. Denormandie SCPI, deficit SCPI, or Malraux SCPI exist. Ideal for investors seeking simplicity and portfolio diversification without direct rental management.
Bare ownership: a long-term strategy
Buying bare ownership of a property allows you to purchase at a substantial discount (up to -40%), while the usufruct is temporarily transferred to a third party. Ideal for retirement or estate planning—no management, no immediate taxes.
Why Nice remains a strategic investment destination
Even without Pinel, Nice retains all its strengths: a tight housing market, exceptional quality of life, and high tourist and economic appeal. In some neighborhoods, rental vacancy rates are near zero. Investing here means securing your capital in a thriving environment.
Maison CINO identifies the most promising neighborhoods, rarest properties, and offers tailor-made strategies aligned with the new tax framework.
The end of Pinel is a transition, not an end. The real opportunities lie in a deep understanding of the market, prime locations, and inventive strategies. At Maison CINO, we turn these new rules into solid, customized projects. To discuss your investment, contact our real estate experts.