Breaking News: French Property Tax Scrapped


As issues go they don't get much more contentious than this. President Sarkozy's proposal to levy a new tax against holiday home owners sent shock waves across the French property market. The tax was aimed at foreigners who owned second homes in France. The French government wanted the second homeowners to contribute more to the national budget for the infrastructure and services they use. The tax would equate to 20% of the valeur locative cadastrale (VLC) - a theoretical rental value of the property set by the local tax office - and would be applied from January 2012. This was on top of the two local property taxes (taxe foncière and taxe d'habitation) that foreign owners already pay. Only owners who agreed to let their property out on a long let basis would have been exempt. It would have affected around 360,000 homes in total more than half of which were owned by Brits. However a political u-turn was witnessed yesterday when Sarkozy scrapped the plans. It is believed he found himself under intense pressure from senior politicians representing expatriates who own properties in France. Political observers said the fact that expatriate home owners will be able to vote for MPs from next year may have prompted Sarkozy's retreat. They were not a group he wanted to upset. It is also believed that the EU would have thrown out the tax as it is deemed as discriminating between residents and non-residents. Whatever the political reasoning its great news for all us home owners and future home owners in France. For more information on properties currently available to buy in France go to www.alpineangels.net


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© Copyright Campion (UK) Ltd 2017.
FRANCE PROPERTY SALES SARL C.P. No CPI 7401 2016 000 004 662