The tax incentive to invest in real estate is too expensive for the state, according to the Finance Inspectorate. There is therefore very little chance that the Pinel device, which must end in 2021, be extended, at least as is.

The Finance Inspectorate and the Sustainable Development Council have made their calculations. In a report submitted to the government, they estimate that the state is losing with this device which is expensive: 2 billion euros per year, for a questionable efficiency. Real estate professionals have always defended the Pinel and the devices that preceded it: Scellier, Borloo, Duflot etc. With one argument: what it costs the state in tax benefits granted to individuals, the tax returns it through the VAT revenues on the construction of new housing. Well no ! The account is not there, says the Inspectorate of Finance. The state is losing.

The operation may be losing

Which pleads for a revision of the device. Especially since these experts also point to other disadvantages: individuals who buy to rent and therefore to benefit from the tax reduction do not always a good deal. The homes sold under the Pinel are not always well located, their value at the end of the rental period has sometimes increased little, so that the operation may be losing.

The Finance Inspectorate, however, does not advocate removing this device, otherwise it is the entire construction sector that could collapse. But it will have to be much better framed and limited. The term of the Pinel is set for the moment to 2021. Individuals looking for avenues for tax cuts are warned: this device is unlikely to survive intact for a long time.