The French government has extended the right to impose an increase in municipal taxes on second homes of up to 60 percent to thousands of municipalities that were previously exempt. A decision that will be made after the abolition of the tax for all residents who live permanently in their apartment. The municipalities to which the measure is aimed must announce their decision by October as to whether they want to make use of the opportunity granted or not.
The measure increases the number of affected municipalities from the current 1136 to 2263, emphasize British media, recalling that there are 86,000 owners of British second homes in France, out of a total of about 3.6 million second homes reviewed by the National Institute of Economic Studies and Statistics . Council tax could rise between 5 and 60% from next year.
The Macron government chose the new areas based on where it believes there is a “significant imbalance” between housing supply and demand. Earlier this year, the president ordered every homeowner to notify the government if they own a second home. Anyone who failed to meet the deadline was fined 150 euros. What is happening in France – some analysts quoted by the British media comment – reflects the increase in British local authorities’ taxes on second homes in order to free up apartments for locals.
France, explains Jason Porter of Blevins Franks, “has introduced radical changes to its property tax system aimed at making owners of empty, unfurnished houses and second homes pay new or additional taxes, particularly in areas where the government “sees a significant imbalance between supply and demand, which often affects areas considered “touristy.”