Pinel Zero-Cost Schemes: What to Do in 2026?

A Pinel zero-cost scheme referred to a buy-to-let investment where the monthly net cost to the investor was theoretically nil, thanks to the combination of rental income, the tax reduction and mortgage interest deductions. With the Pinel scheme having ended on 31 December 2024, committed investors must now manage the next phase of their investment without the tax advantage that was its cornerstone.

Introduction

The Pinel scheme mobilised tens of thousands of French investors between 2014 and 2024. In Paris and Ile-de-France, eligible new-build programmes multiplied, driven by commercial arguments centred on the zero-cost scheme: “your investment costs you nothing.” In reality, the underlying assumptions (property appreciation, stable rents, no vacancy) often proved fragile.

In 2026, the first Pinel investors who entered in 2014-2015 are reaching the end of their 12-year commitment period. Others, who entered between 2020 and 2024, are still midway through. For all of them, the question of strategic rebalancing arises: hold, sell or transform. This guide analyses the options.

Table of contents

• What is a Pinel zero-cost scheme, and did it ever exist?
• Does Pinel still exist in 2026?
• Should you hold the property after the commitment ends?
• Can you resell a Pinel property, and at what tax cost?
• Should you switch your Pinel to furnished rental?
• Frequently asked questions

What is a Pinel zero-cost scheme, and did it ever exist?

A zero-cost scheme is a buy-to-let investment whose net monthly cost is theoretically nil: rent plus the tax saving cover the mortgage payment. In practice the equation ignored property tax, non-recoverable charges and vacancy: the real savings effort was 200 to 400 euros a month.

The principle of the zero-cost scheme rested on the following equation: monthly mortgage payment - rental income - monthly tax saving = zero or near-zero savings effort. For an apartment purchased at 250,000 euros in zone A bis (Paris and neighbouring municipalities), with a 12-year commitment, the tax reduction reached 14% of the price under the 2024 scale, the scheme’s final year, or 35,000 euros spread over 12 years, approximately 2,917 euros/year or 243 euros/month. Earlier generations enjoyed higher rates, and therefore a larger monthly tax saving: the equation below is built on the least favourable assumption.

With a rent of 900 euros/month and a mortgage payment of 1,100 euros/month (250,000 euros over 25 years, insurance included, at the 1.5% rate available when these deals were structured in 2019-2021), the monthly shortfall was 200 euros, covered by the 243 euro tax saving. The scheme appeared cost-neutral.

In reality, this equation ignored several charges: property tax (1,500 to 3,000 euros/year in Ile-de-France for new-build), non-recoverable co-ownership charges (800 to 1,500 euros/year), non-occupant owner insurance (200 to 400 euros/year), rental management fees (6 to 8% of rent), rental vacancy (estimated at 4 to 8 weeks over 12 years). Including these items, the real savings effort was often 200 to 400 euros/month.

On top of this, Pinel rents were capped and often 10 to 20% below market rent in high-demand areas. The lost rental income added to the real cost of the scheme.

Does Pinel still exist in 2026?

No. The scheme ended on 31 December 2024, Pinel+ included, and no equivalent replacement has been created for individuals buying new-build. Commitments signed before that date run normally to their term: a 2020 purchase with a 9-year commitment runs until 2029.

The Pinel scheme ended on 31 December 2024. No equivalent replacement has been introduced for individual investors in new-build. Existing commitments continue normally: an investor who purchased in 2020 with a 9-year commitment must maintain the rental until 2029.

The Pinel+ (Super Pinel), which maintained higher reduction rates for housing meeting quality-of-use and energy-performance criteria, also ended in 2024.

For investors reaching the end of their commitment in 2026, the main question is: is my property worth more or less than at purchase? In Ile-de-France, new-build programmes acquired between 2014 and 2018 generally benefited from the price increase. Those acquired between 2020 and 2024, often at already elevated prices in outlying municipalities, may show a discount of 5 to 15% compared to the purchase price, net of notary fees and agency fees.

Should you hold the property after the commitment ends?

Yes if the property is well located, in good condition and delivers an acceptable net yield once charges and tax are factored in. Once the commitment ends, the rent cap and the tenant income cap both fall away: this is the moment to reset the rent at market level.

Once the Pinel commitment is complete, the property returns to standard rules. The owner can continue renting unfurnished (real expenses regime or micro-foncier) without rent caps or tenant income limits. This is the opportunity to reassess the rent at market level.

Holding is appropriate if the property is well located, in good condition and generates an acceptable net yield once charges and taxes are factored in. For a property where the mortgage is paid off or with a low remaining balance, the net yield can be attractive.

On the other hand, holding a poorly located property (supply/demand imbalance zone, distant from transport) or one in a co-ownership with high charges can tie up capital better deployed elsewhere. The analysis must factor in the opportunity cost: does the equity locked in the property generate a higher return than it would in another investment?

Can you resell a Pinel property, and at what tax cost?

Yes, but any resale before the end of the commitment (6, 9 or 12 years) triggers a full clawback of the tax reduction received: up to 35,000 euros on a 250,000 euro property committed for 12 years. After the term, resale is unrestricted and the capital gain is taxed at 36.2%, less holding-period allowances.

Resale is the most common decision when exiting Pinel. Capital gains tax is levied at 19% (income tax) + 17.2% (social contributions), totalling 36.2%. Holding-period allowances apply: full income tax exemption after 22 years of ownership and full social contributions exemption after 30 years.

For a property acquired in 2014 and resold in 2026 (12 years of ownership), the income tax allowance is 6% per year from the 6th year onward, totalling 42%. The social contributions allowance is 1.65% per year from the 6th to the 21st year, totalling 11.55%.

Beware of the early resale trap: if the rental commitment is not respected (resale before the end of the 6, 9 or 12-year term), the entire tax reduction received is clawed back. For a property at 250,000 euros with a 12-year commitment, the clawback can reach 35,000 euros.

The Pinel resale market presents a specific challenge: these properties arrive simultaneously on the market in the same developments, creating competition among sellers and downward pressure on prices. An experienced property hunter in Paris can help you position your property distinctively.

Should you switch your Pinel to furnished rental?

It is the most tax-advantageous option on exiting Pinel. For a property bought at 250,000 euros with land estimated at 30%, the depreciable base is 175,000 euros, which is 5,800 to 7,000 euros a year of charges deductible from BIC income over 25 to 30 years.

Switching to non-professional furnished rental (LMNP) is the most tax-advantageous alternative after the end of Pinel. The LMNP regime allows depreciation of the property (excluding land), furniture and acquisition costs, generating low or zero-taxed rental income for several years.

For a Pinel property purchased at 250,000 euros with land estimated at 30%, the depreciable base is 175,000 euros. Over 25 to 30 years of depreciation, this represents 5,800 to 7,000 euros/year of charges deductible from BIC income, to which is added furniture depreciation (5 to 10 years), current charges and mortgage interest.

Switching to furnished rental requires waiting for the end of the current unfurnished lease (6-month notice before expiry for non-renewal, with legitimate grounds) or the tenant’s departure. The property must be equipped in accordance with the decree of 31 July 2015 (bedding, hob, refrigerator, table, etc.).

For a deeper look at the furnished rental strategy, see our furnished rental guide for Paris. Our property hunters also support investors in portfolio management through our buy-to-let service.

Frequently asked questions

Can you resell a Pinel property before the end of the commitment period?

Yes, but reselling before the end of the commitment period (6, 9 or 12 years) triggers a full clawback of the entire tax reduction received since the start. This clawback is added to income tax for the year of resale. The tax loss can reach tens of thousands of euros.

What is a zero-cost scheme in real estate?

A zero-cost scheme (opération blanche) refers to a buy-to-let investment where the net cost to the investor is close to zero thanks to the combination of rental income, tax reduction and tax benefits. Under Pinel, the zero-cost scheme was the main selling point of developers, but it relied on often optimistic assumptions.

What are the alternatives to Pinel for investing in new-build in 2026?

In 2026, alternatives to Pinel in new-build are limited. The intermediate rental housing scheme (LLI) offers a reduced 10% VAT rate for institutional investors. For individuals, the LMNP (non-professional furnished rental) status with depreciation remains the most advantageous tax framework for a buy-to-let investment.

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Do you own a Pinel property and are wondering about the best exit strategy? Our property hunters support you in analysing your portfolio and identifying reinvestment opportunities in Paris. Contact us for a personalised assessment.