Tax hike on sec­ond homes in “ten­sion” towns

French Property News - - News -

Own­ers of sec­ond homes in ma­jor French cities and towns look set to be charged sig­nif­i­cantly more coun­cil tax as part of a gov­ern­ment clam­p­down on empty dwellings.

Pres­i­dent Em­manuel Macron has au­tho­rised steep taxe d’habi­ta­tion rises in al­most 1,200 large com­munes where de­mand for hous­ing out­strips sup­ply. His aim is to dis­cour­age Airbnb-style short-term hol­i­day lets and en­cour­age peo­ple to either sell their sec­ond homes or rent them out on a long-term ba­sis.

Paris has al­ready im­posed the max­i­mum 60% hike as has the Riviera city of Nice. The At­lantic sea­side re­sort of St-jean-de-luz has im­posed a 40% hike and Bordeaux looks set to levy a sur­charge of 20-50%. Cities such as Nantes, Mont­pel­lier and Mar­seille are per­mit­ted to im­pose the sur­charge as are the touristy towns of La Rochelle, Ar­ca­chon and Aix-en-provence.

How­ever, many com­mu­ni­ties pop­u­lar with Bri­tish buy­ers are not in the iden­ti­fied ‘ zones ten­dues’ (ten­sion zones) au­tho­rised to im­pose the hike. The cities of Rennes, Per­pig­nan and Li­mo­ges are un­af­fected, for ex­am­ple, as are the towns of Berg­erac, Albi, An­goulême and Béziers.

Cash-strapped may­ors in the iden­ti­fied ‘ten­sion zones’ are likely to leap at the op­por­tu­nity to raise more funds be­cause of si­mul­ta­ne­ous gov­ern­ment re­forms to scrap taxe d’habi­ta­tion for most owne­roc­cu­piers across France. To find out if your com­mune is af­fected visit ser­vice-pub­lic.fr/sim­u­la­teur/ cal­cul/zones-ten­dues

The Riviera city of Nice

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