Pinel Breton 2024: Why, where and how to invest before the end?

Estimated reading time approx. 6 minutes.

SUMMARY

In 2024, Pinel Breton, the regional adaptation of the Pinel law, ends. This system, implemented in Brittany from 2020, was designed to surgically target rental investment in the region. Exploring the prospects and eligible cities for investors in the Brittany property market in 2024.

History and development of Pinel Breton

Pinel Breton, introduced by Article 164 of the Financial Law for 2020, extended the geographical scope of the national system to a selection of municipalities located in the B2 zone. These municipalities that did not respond to requirements of classic Pinel however, it suffered from a lack of affordable housing in certain specific sectors. There was thus high tension in the market for rental housing in small parts of the territory.

The expansion of the system to areas not included in the classic Pinel should better respond to the specifics of the Brittany real estate market.

In addition, in large cities such as Brest, Vannes and Lorient, Pinel Breton has made certain specific neighborhoods eligible, selected based on criteria such as housing demand and local market dynamics.

The system also took into account municipalities with unique characteristics, such as areas with significant economic development or strategic urban planning projects.

Medium-sized municipalities focused on 4 Brittany departments

Breton Pinel covers 58 communes in Brittany and offers a wider geographical coverage than classic Pinel.

This fine-grained zoning makes it possible to specifically target certain neighborhoods and respond more precisely to the rental needs of those areas.

This targeted approach makes it possible to solve the specific challenges of each municipality or district, whether it is rent tension, economic development or urban planning projects.

The Pinel system is valid in 58 municipalities in the Brittany region. Classic Pinel includes 25 entire municipalities that are part of the B1 zone. 24 other communes are affected by the Breton version of the system, which includes 126 IRIS (Ilots Regroupees pour l’Information Statistique defined by INSEE). Finally, 10 more municipalities are integrated, covering 48 INSEE tiles, each measuring 200 x 200 meters.

List of municipalities eligible for Pinel Breton

You will not find the following municipalities in Pinel’s lists of authorized municipalities. However, some districts of these cities are eligible for Pinel Breton.

FYI: the municipalities of Brest, Concarneau, Lorient and Quimper, which were no longer eligible for Pinel due to their location in the B2 zone, benefited from the 2023 rezoning and are now fully eligible for Pinel as they are located in the B1 zone.

Department / City Flat Circuit Ceiling rental
22 – Côtes d’Armor
Lannion B2 Tile €9.50
Plein B2 IRIS district €9.50
Ploufragan B2 IRIS district €9.50
Saint Brieuc B2 IRIS district €9.50
29 – Finistère
Brest B2 IRIS + Tile area €9.50
Concarneau B2 IRIS district €9.50
Gilers B2 IRIS district €9.50
Guipavas B2 IRIS district €9.50
Creeping B2 IRIS district €9.50
Pluguffan B2 IRIS district €9.50
Quimper B2 IRIS district €9.50
Le Relecq-Kerhuon B2 IRIS district €9.50
35 – Ille-et-Villaine
Bain de Bretagne vs Tile €9.50
Cancale B2 Tile €9.50
Ferns vs Tile €9.50
Delivered vs Tile €9.50
Meless vs Tile €9.50
Noyal-sur-Vilaine B2 Tile €9.50
Pleurtuit B2 Tile €9.50
Window vs Tile €9.50
56 – Morbihan
Auray B2 IRIS district €9.50
Hennebont B2 IRIS district €9.50
Lanester B2 IRIS district €9.50
Lorient B2 IRIS district €9.50
Plescope B2 IRIS district €9.50
Queven B2 IRIS district €9.50
Quiberon B2 IRIS district €9.50
Saint-Ave B2 IRIS district €9.50
Senna B2 IRIS district €9.50
Valves B2 IRIS district €9.50

If you want to invest with Breton Pinel in 2024, know that this local version has unique characteristics that distinguish it from the classic Pinel system.

Ceiling rental for zone B2

THE rent ceilings and tenant resources are defined by prefectural decree, which allows finer adaptation to local market conditions.

However, they most often correspond to the ceilings of zones B2 and C, which are the same in 2023: EUR 9.50/m².

This cap modulation aims to make the system more efficient and fairer by ensuring that housing remains affordable for target tenants while being viable for investors.

This flexibility also contributes to a better match between housing supply and local demand, thus promoting a healthier balance in the property market.

Specific tax return

Owners of landlords who participate in Pinel Breton are required to fill out a specific tax declaration, the so-called form No. 2041-PBin addition to their annual income tax return.

This additional declaration allows tax authorities to closely monitor the application of the system and ensure compliance. It involves providing accurate details of housing, tenants and rent received, thereby enhancing the transparency and efficiency of the system.

Changes to Pinel (and Breton Pinel) in 2024

If you are considering a rental investment for 2024, here is a small overview of the upcoming changes for Pinel that also affect Pinel Breton. Tax cut rates will drop:

  • 14% for a 12-year commitment,
  • 12% for 9 years,
  • 9% for 6 years.

On the other hand, chooseinvest through Pinel Plus will offer greater tax benefits in 2024. The tax reduction rates for Pinel Plus in 2024 will still allow you to enjoy the maximum rates of 21% for a 12-year commitment, 18% for a 9-year and 12% for a 6-year. This option is particularly attractive to investors who want to maximize their tax benefits.

Why invest in Pinel+ in Brittany in 2024?

The Pinel Plus system, presented in March 2022 by Emmanuelle Wargon, the former minister responsible for housing, is an ecologically responsible and social evolution of the classic Pinel system. This new scheme aims to encourage rental investment green real estate programsthereby aligning France’s real estate goals with its commitments to sustainable development, notably the Paris Agreement and carbon neutrality by 2050.

A characteristic aspect of Pinel Plus is the emphasis on the criteria of comfort and quality of living, inspired by the Girometti-Leclercq report. These criteria include increased requirements for comfort, insulation, ventilation and natural light.

The accommodation must respect specific minimum living areas, ranging from 28 m² for a studio to 96 m² for a T5. Particular attention is also paid to lightness and outdoor space with requirements for dual orientation from T3 and private outdoor spaces for all accommodation.

For classic Pinel, Breton or not, the house price ceiling for tax reduction is set at €300,000 or €5,500/m², with a tax reduction limit of €10,000 per year and per tax household.

Pinel Plus also includes housing located in Urban Priority Neighborhoods (QPPV), offering potentially more profitable investment opportunities due to lower prices per m² in these areas.

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