PTZ: The French Zero-Interest Loan Guide
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PTZ: The French Zero-Interest Loan Guide
The French Prêt à Taux Zéro (PTZ) is a 0% state-backed loan for first-time buyers. See eligible zones, property types, income tiers and terms.
Note: This content is specific to the French property market. The Prêt à Taux Zéro (PTZ) is one of the main subsidies for first-time buyers in France. It is a loan from the state with 0% interest: you repay exactly the amount you borrowed. It never finances the whole purchase; it is granted alongside a standard bank mortgage. The rules were changed by the 2025 Finance Act and by Decree no. 2025-299 of 29 March 2025, so check the conditions in force before you plan your financing.
Key Takeaways
- Detached new houses: eligible again in all zones, with a lower financing share than for apartments.
- New apartments in collective buildings: eligible in all zones (A bis, A, B1, B2, C).
- Existing properties with works: only in zones B2 and C, and only if the works represent at least 25% of the total cost of the operation.
- Income: ceilings depend on the zone and household size, and are based on the reference tax income (RFR) of year N-2.
- Duration: 10 to 25 years in total depending on the income tier, with a deferral period in which no capital is repaid (tiers 1 to 3).
1. Who can get the PTZ?
- First-time buyer: You must not have owned your main residence in the last 2 years.
- Income ceiling: Your reference tax income (Revenu Fiscal de Référence, N-2) must not exceed the ceiling for your zone and household size.
- Main residence: The financed property must become your main residence.
Zoning Is Crucial
France is divided into zones according to housing market pressure: A bis, A, B1, B2 and C. Zones A bis and A are the most tense, zone C the least tense. The zone determines which properties are eligible, the cost taken into account and the income ceilings.
- Tip: Check your zone on the Service-Public website before making any plans.
Income ceilings by tier
The RFR is divided by the household's family coefficient (1 person: 1.0; 2 persons: 1.5; 3 persons: 1.8; 4 persons: 2.1; 5 persons: 2.4; 6 persons: 2.7; 7 persons: 3.0; 8 persons or more: 3.3). The result sets the tier, read from the table below.
| Tier | Zones A bis and A | Zone B1 | Zone B2 | Zone C |
|---|---|---|---|---|
| Tier 1 | up to €25,000 | up to €21,500 | up to €18,000 | up to €15,000 |
| Tier 2 | €25,001 to €31,000 | €21,501 to €26,000 | €18,001 to €22,500 | €15,001 to €19,500 |
| Tier 3 | €31,001 to €37,000 | €26,001 to €30,000 | €22,501 to €27,000 | €19,501 to €24,000 |
| Tier 4 | €37,001 to €49,000 | €30,001 to €34,500 | €27,001 to €31,500 | €24,001 to €28,500 |
Above the tier 4 ceiling, the PTZ is not granted. These ceilings apply to a single person (coefficient 1.0); for larger households the maximum RFR rises with the coefficient (for example, €72,450 for 4 persons in zone B1).
2. How much can you get?
The PTZ never covers 100% of the purchase. The amount depends on:
- The zone and the type of property.
- The household size, which sets the cost capped for the calculation.
- The income tier, which sets the quotité: the percentage of the cost financed by the PTZ.
| Income tier | New apartment (collective building) | New detached house | Existing property with works (B2, C) | Social housing sale (HLM, PSLA, BRS) |
|---|---|---|---|---|
| Tier 1 | 50% | 30% | 50% | 20% |
| Tier 2 | 40% | 20% | 40% | 20% |
| Tier 3 | 40% | 20% | 40% | 20% |
| Tier 4 | 20% | 10% | 20% | 20% |
The cost taken into account is capped by household size and zone. If the actual price is higher, the calculation uses the cap:
| Persons in household | Zones A bis and A | Zone B1 | Zone B2 | Zone C |
|---|---|---|---|---|
| 1 person | €150,000 | €135,000 | €110,000 | €100,000 |
| 2 persons | €225,000 | €202,500 | €165,000 | €150,000 |
| 3 persons | €270,000 | €243,000 | €198,000 | €180,000 |
| 4 persons | €315,000 | €283,500 | €231,000 | €210,000 |
| 5 persons or more | €360,000 | €324,000 | €264,000 | €240,000 |
What counts toward the cost: the price of the property, eligible construction or renovation works and agency fees. Notary fees, transfer taxes and furniture are excluded.
3. Detached new houses: eligible again
This is the main recent change. The new detached house, which had been excluded, is eligible again, with a lower financing share.
- New apartment in a collective building: eligible in all zones.
- New detached house: eligible in all zones, with the quotas shown in the table above.
- Existing property to renovate: eligible only in zones B2 and C, with works representing at least 25% of the total cost of the operation, an energy upgrade reaching at least DPE class D, and no fossil-fuel heating installed (gas, heating oil).
- Social housing sale: the purchase of an HLM dwelling by its tenant, under PSLA or Bail Réel Solidaire, is eligible in all zones with a fixed 20% quotité.
4. PTZ + Loan smoothing: a winning combination
Banks often offer loan smoothing (lissage). Because the PTZ has a different duration and deferral from your main loan (see section 5), the bank "smooths" the monthly payments so you pay the same amount each month. This can increase your immediate borrowing capacity by reducing the overall monthly burden.
- Check your eligibility: Use our PTZ Simulator to see whether you qualify and how much you could get.
5. Duration, deferral and concrete examples
During the deferral period the loan repays no capital: the PTZ payment is zero. Repayment starts afterwards, without interest.
| Tier | Deferral | Repayment | Total duration |
|---|---|---|---|
| Tier 1 | 10 years | 15 years | 25 years |
| Tier 2 | 8 years | 12 years | 20 years |
| Tier 3 | 2 years | 13 years | 15 years |
| Tier 4 | None | 10 years | 10 years |
Let's look at a few examples:
- A couple with two children (4 persons, coefficient 2.1), living in zone B1, with an RFR of €40,000: after dividing by the coefficient they reach €19,048, which is tier 1. For a new apartment in a collective building, the quotité is 50%, with a cost cap of €283,500. On a €200,000 cost, the PTZ would be €100,000, over a total duration of 25 years.
- A single person, living in zone A, with an RFR of €60,000, is not eligible: the income exceeds the €49,000 tier 4 ceiling for zone A.
- A couple with one child (3 persons, coefficient 1.8), living in zone C, with an RFR of €30,000: after dividing by the coefficient they reach €16,667, which is tier 2 (€15,001 to €19,500 in zone C). For an existing house to renovate, the quotité is 40%, with a cost cap of €180,000, over a total duration of 20 years.
6. Conclusion
The PTZ is a significant financial aid: an interest-free loan that can cover a meaningful share of your purchase. If you are eligible, it is essential to prepare your application accordingly. Check whether your project (new apartment, new house, existing property with works, social housing) matches your zone and your income tier.
- Check my PTZ: Use our simulation tool to see whether you qualify and how much you could get.
Key Takeaways Summary
- The PTZ is an interest-free loan granted by the state to help households buy their main residence.
- Detached new houses are eligible again, in all zones, with a lower quotité.
- New apartments in collective buildings are eligible in all zones.
- Existing properties with works are eligible only in zones B2 and C, with works representing at least 25% of the total cost.
- Income ceilings depend on the zone and household size, and are based on the RFR of year N-2.
- The quotité ranges from 50% to 10% depending on the income tier and property type.
- The total duration ranges from 10 to 25 years depending on the income tier.
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