France

Second home owners in cities in France face huge tax hike

by Ray Clancy on February 22, 2018

Hundreds of thousands of second home owners in cities in France, including many expats who’ve bought property in the country, face large rises in the tax that they pay to town halls.

When he became President, Emmanuel Macron said that he would increase the tax d’habitation for holiday and second home owners, with some owners facing a doubling of rates.

France Tax

(By xtock/Shutterstock.com)

Some authorities, such as in Paris, have already introduced the higher rate of tax with other cities and towns now doing so too. It is regarded as an easy way to increase their budgets.

Nice, Saint Jean de Luz and Bordeaux have already hiked the tax and a total of 1,151 French councils, towns and cities with a population of more than 50,000 can increase the tax under powers outlined in the last Budget.

Some city town halls also see the tax boost as an opportunity to cut back on short term rentals under Airbnb-style platforms. They believe that too many people are buying homes to let them out to tourists and pushing up prices for ordinary people.

According to France’s national statistical office INSEE there are 3.4 million second homes in France, amounting to one in 10 of all properties with 110,000 second homes in Paris.

The average tax d’habitation in Paris is around €1,000 and the French media has reported that second home homes are now paying almost double that with the charge set to bring in an extra €200 million to city hall.

Meanwhile, many ordinary home owners face pay no tax d’habitation as part of another Macron election promise. The aim is to have 80% of people not paying the tax on their main home by 2020.

Couples without children, those with an income of less than €48,000, couples with a child who bring in less than €54,000 and single people with an income of less than €30,000 won’t have to pay the tax.

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