The Denormandie law is a French tax-relief scheme offering a 12%, 18% or 21% income-tax reduction to investors who buy an older property to renovate in an eligible town, provided they carry out at least 25% of works and rent it out. It is the “older-property-to-renovate” counterpart of the Pinel scheme, tailored for renovation.
What is the Denormandie law?
The Denormandie law encourages the renovation of older homes in town centres earmarked for revitalisation. In return for substantial works and a rental commitment, the investor enjoys a tax reduction proportional to the rental period. The scheme is extended until 31 December 2027.
What is the tax benefit for investors?
The tax reduction depends on the rental commitment:
- 12% of the cost price for 6 years of rental,
- 18% for 9 years,
- 21% for 12 years.
The calculation base (purchase + works) is capped at €300,000 per year, so the benefit can reach up to €63,000 over 12 years. The works must represent at least 25% of the total cost of the operation — hence the importance of a well-sized renovation project.
Which properties and towns are eligible?
The home must be older and located in one of the eligible municipalities (Action Cœur de Ville programmes, Territorial Revitalisation Operations — ORT, or run-down condominiums), i.e. more than 245 municipalities. The works must improve energy performance or constitute a substantial renovation.
The conditions to meet
- Carry out works representing at least 25% of the total cost of the operation.
- Rent the home unfurnished, as a main residence, for 6, 9 or 12 years.
- Comply with the rent caps and tenant income limits by zone.
- Buy in an eligible municipality before 31 December 2027.
Genesius’s role in your project
The 25%-works requirement and performance criteria make the quality of the project decisive. Genesius provides full project management of your Denormandie renovation: precise costing to reach the works threshold, trade coordination, compliant invoices. See the Renovation and construction page.
For non-resident investors, we manage the project remotely with regular reporting.
Frequently asked questions about the Denormandie law
What tax reduction does the Denormandie law offer?
12% of the cost price for 6 years of rental, 18% for 9 years and 21% for 12 years, within a base capped at €300,000 per year.
What share of works must be carried out?
The works must represent at least 25% of the total cost of the operation (purchase + works).
Where can you invest under Denormandie?
In eligible municipalities: Action Cœur de Ville programmes, Territorial Revitalisation Operations (ORT) or run-down condominiums — more than 245 municipalities.
What are the rental obligations?
Rent the home unfurnished as a main residence for 6, 9 or 12 years, respecting rent caps and tenant income limits.
Does Genesius handle the tax side?
No. Genesius carries out the works and project management. The tax structuring is validated by your tax adviser.
This article is provided for general information only and does not constitute tax advice. Rates and conditions are subject to change; check your eligibility with a tax adviser.