The Denormandie older-property scheme: tax reduction, works, eligible municipalities
The Denormandie older-property scheme (article 199 novovicies of the French General Tax Code) cuts tax by 12%, 18% or 21% of the price depending on a 6, 9 or 12-year letting commitment, provided works make up at least 25% of the total cost. Cap of 300,000 euros and 5,500 euros per square metre. Runs until 31 December 2027.
A scheme for older property with works, in targeted municipalities
The Denormandie older-property scheme, based on article 199 novovicies of the CGI, created by article 226 of Act no. 2018-1317 of 28 December 2018 on finance for 2019, grants an income-tax reduction for buying an older home with works, intended for intermediate letting.
Eligible municipalities: those listed in the annex to the order of 26 March 2019, close to the Action Coeur de Ville programme label, municipalities that have signed a territory revitalisation agreement (ORT, article L. 303-2 of the CCH), and, since 11 April 2024, dwellings located in severely distressed co-ownerships or within a distressed co-ownership requalification scheme (ORCOD, articles L. 741-1 and L. 741-2 of the CCH), an extension introduced by article 42 of Act no. 2024-322 of 9 April 2024.
The rate depends on the letting commitment period
| Commitment period | Rate in mainland France | Rate overseas |
|---|---|---|
| 6 years | 12% | 23% |
| 9 years | 18% | 29% |
| 12 years | 21% | 32% |
Denormandie reduction rate by letting period
The works: at least 25% of total cost, completed within 2 years
The works must make up at least 25% of the total cost of the operation, purchase price and works combined, and must be completed by 31 December of the second year following the purchase (BOI-IR-RICI-365-10, paragraph 100).
They must be carried out by a qualified professional. The requirement for RGE certification is widely reported by tax practitioners, but was not found word for word in the regulatory text consulted for this page: check decree no. 2019-232 of 26 March 2019 before making a firm commitment on this specific point.
Investment cap: 300,000 euros per taxpayer per year, and 5,500 euros per square metre of living space.
Rent and income caps, and the scheme's deadline
Rent and tenant-income caps follow the same zoning as the Pinel scheme, A bis, A, B1, B2 and C. The scheme applies to purchases made until 31 December 2027, a date confirmed by article 42 of Act no. 2024-322 of 9 April 2024, which pushed back by a year the original 2026 deadline set by the 2024 Finance Act. Many unofficial sites still quote 2026 as the final date: that has not been the case since 9 April 2024.
Frequently asked questions
What is the Denormandie reduction rate depending on the letting period?
12% of the price for a 6-year commitment, 18% for 9 years, 21% for 12 years in mainland France (23%, 29% and 32% overseas), under article 199 novovicies of the CGI.
What share of the budget must the works represent?
At least 25% of the total cost of the operation, purchase price and works combined, and these works must be completed by 31 December of the second year following the purchase.
Until when can you invest under the Denormandie scheme?
Until 31 December 2027, a deadline confirmed by article 42 of Act no. 2024-322 of 9 April 2024, which pushed back by a year the original 2026 deadline set by the 2024 Finance Act.
Are distressed co-ownerships eligible for the Denormandie scheme?
Yes, since 11 April 2024. Dwellings located in a severely distressed co-ownership or within a distressed co-ownership requalification scheme, ORCOD, articles L. 741-1 and L. 741-2 of the CCH, are eligible, an extension introduced by the Act of 9 April 2024.
What is the investment cap under the Denormandie scheme?
300,000 euros per taxpayer per year, and 5,500 euros per square metre of living space.
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