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Second home owners in France face swinging increase in property tax
| Published: | 22 Feb at 6 PM |
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British owners of second homes in France are facing a 60 per cent increase in property taxes following reforms by the new French president.
Macron’s aim is to discourage the disruption of the property market caused by short-term holiday rentals by slapping a 60 per cent increase on property tax for second homes. Short-term rentals, he believes, are increasing the costs of full-time residents and need to be discouraged. The move was first mooted in his first budget, announced last year, and was immediately put into effect in Paris.
Since then local councils across the country have been cracking down on second home ownership. Bordeaux, Nice and Saint Jean de Luz are notable for their swift adoption of the new law, but over a thousand more French towns as well as cities with a population of over 50,000 are eligible for the tax hike. According to the France’s financial daily Les Echos, the law is being seen as irresistible by the vast majority of eligible local councils, with cash-strapped mayors desperate to get their hands on the unexpected windfall since last year’s move to end council tax for owner-occupiers.
The tax hike is also popular with French voters, particularly those living in major tourism destinations, many of whom haven’t been able to find an affordable property due to the popularity of the short term rental market. France’s official national statistics state the country has 3.4 million second homes, many owned by Britons, but the 200,000 UK expats living permanently in France won’t be affected by the increase. As for the abolition of council tax, eligibility is based on income with, for example, a couple bringing in less than €48,000 a year are exempted, as are couples with one child who bring in €54,000 or less. Single people with less than €30,000 are also exempted.
Macron’s aim is to discourage the disruption of the property market caused by short-term holiday rentals by slapping a 60 per cent increase on property tax for second homes. Short-term rentals, he believes, are increasing the costs of full-time residents and need to be discouraged. The move was first mooted in his first budget, announced last year, and was immediately put into effect in Paris.
Since then local councils across the country have been cracking down on second home ownership. Bordeaux, Nice and Saint Jean de Luz are notable for their swift adoption of the new law, but over a thousand more French towns as well as cities with a population of over 50,000 are eligible for the tax hike. According to the France’s financial daily Les Echos, the law is being seen as irresistible by the vast majority of eligible local councils, with cash-strapped mayors desperate to get their hands on the unexpected windfall since last year’s move to end council tax for owner-occupiers.
The tax hike is also popular with French voters, particularly those living in major tourism destinations, many of whom haven’t been able to find an affordable property due to the popularity of the short term rental market. France’s official national statistics state the country has 3.4 million second homes, many owned by Britons, but the 200,000 UK expats living permanently in France won’t be affected by the increase. As for the abolition of council tax, eligibility is based on income with, for example, a couple bringing in less than €48,000 a year are exempted, as are couples with one child who bring in €54,000 or less. Single people with less than €30,000 are also exempted.
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