France, thousands of municipalities agree to increase taxes by up to 60% on second homes

The French government has granted thousands of exempted local authorities so far the right to impose an increase of up to 60 percent on municipal taxes for second residences on their lands. It is the decision that comes after the abolition of the tax on all residents who live permanently in their homes. The municipalities to which this provision is directed will have to inform them of the choice whether or not to take advantage of the possibility granted by October.

This item raises the number of affected municipalities from 1,136 to 2,263, according to British media, noting that in France there are 86,000 British second home owners, out of a total of about 3.6 million second homes reviewed by the National Institute for Economic Studies and Statisticians. . The municipal tax could be increased between 5 and 60 percent starting next year.

Macron’s government chose the new areas based on its belief that there was a “noticeable imbalance” between housing supply and demand. Earlier this year, the president ordered every homeowner to notify the government of any possession of a second home, and imposed a €150 fine on those who did not meet the deadline. What is happening in France – according to some analysts in the British media – reflects the increase in taxes imposed by the British local authorities on second homes to free up homes for the local population.

Jason Porter of Blevins Franks explains that France has “made sweeping changes to the property tax system, with the goal of making vacant and unfurnished homeowners and second homeowners pay new or additional taxes, especially in areas where the government sees a significant imbalance.” between supply and demand, often affecting areas considered “tourist”.

See also  Ukraine, the army wants to overthrow Zelensky? Latest news from Russia