France to impose an additional tax on second homes

11.12.2012 09:00
Articles about real estate | France to impose an additional tax on second homes Owners are on the French Riviera may face a new tax. Hollande government announced plans to introduce a tax called super taxe d'habitation for second homes located in places such as the Riviera, Paris, Toulouse and Lyon.

The tax will be part of the program, which includes two new real estate tax. The first of these will be annual from 2013, it will touch the second home owners. A new "super tax" would be equivalent to 5% of the cadastral value of the property.

Related article: Housing in the Netherlands rapidly becoming cheaper

And, if you own a second home, and decided that in this case, it's time to sell your property, and the state has provided this option. Simultaneously increase tax gain on sale of real estate. Since 2014, profit from the sale of real estate in the amount of € 100 thousand and € 150 thousand will be taxed at 3% above the already imposed taxes to 34.5%. If the income is above € 150 thousand, it will be taxed at 5%. Thus, for some sellers of real estate it will increase the total amount of taxes paid by the State and 40%.

Thanks to the new government plans to raise taxes to the treasury of about € 300 million, calling the introduction of "social justice," because it will only affect the wealthy property owners.

But Gilles Karrez, President of the Assembly Finance Committee, called the move "shameful." "This tax will hit the middle class and would be devastating for the real estate sector, which is already in deep crisis," - said the expert.

Recall: approved in the summer of 2012 to increase taxes on property already hit the market in France. On the market, a huge number of high-end housing, and wealthy people now prefer to live in other countries. Among these was the famous fugitives actor Gerard Depardieu, who bought a mansion in Belgium.

Content tags: Overseas property
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