Government proposes housing measures to boost French economy
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.