Gov­ern­ment pro­poses hous­ing mea­sures to boost French econ­omy

French Property News - - News -

Fol­low­ing the an­nounce­ment that coun­cil tax would be slashed for 80% of French house­holds (in­clud­ing for ex­pats who have be­come tax res­i­dents in France), the gov­ern­ment has an­nounced a se­ries of pro­pos­als for new hous­ing laws in the hope of stim­u­lat­ing the econ­omy:

Wealth tax ( im­pôt sur la for­tune) would only be cal­cu­lated on prop­erty as­sets and no longer in­clude in­come. In­stead, a new 30% ‘flat tax’ will be im­posed on fi­nan­cial as­sets.

The Pinel Law would be re­newed but slightly mod­i­fied. The mea­sure, which of­fers a tax re­duc­tion over six, nine or 12 years if you buy a new-build, would now only be avail­able in ar­eas with 250,000 in­hab­i­tants or more, where de­mand for prop­erty out­strips avail­abil­ity. The PTZ (zero in­ter­est rate mort­gage) would be main­tained but, again, only in ur­ban zones where the mar­ket is tense and where de­mand for prop­erty is very high.

The CITE tax re­bate ( credit d’im­pôt pour la tran­si­tion én­ergé­tique) on any works you do that re­duce the car­bon foot­print of your main home, would be largely main­tained but ap­plied to spe­cific work that would ac­tively re­duce en­ergy con­sump­tion such as chang­ing your boiler or in­su­lat­ing your roof.

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