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Changes to the Taxe d’Habitation in France

There have been a few misleading articles about the changes to Taxe d’Habitation in France, so we thought we would address these and lay out the facts.

The fact is that the changes to the taxe d’habitation are not a new initiative. President Macron authorised the move in 2017.

In essence, he scrapped the taxe d’habitation on first homes but has allowed Mayors to increase the taxe on second homes in certain areas, the idea being that these popular areas have seen locals priced out of the market. These include Paris, Bordeaux, certain parts of the Alps, PACA and popular seaside resorts.

Some facts to consider:

– This is not new, it has been around for four years already. French buyers have known about it and it hasn’t dented their current insatiable demand for second homes.

– It affects all second homes, not just those owned by Brits.

– Only certain areas are affected.

– Whilst the percentage rise may sound dramatic, the cost in euros is still only a very small part of the overall running cost of any second home.

– It is highly unlikely to have any effect on the demand from U.K. buyers – the taxes here are generally well below council tax charges in the U.K.

As an example, the council tax on my old property in Elmbridge is currently 4,134 GBP whilst I pay under 1,000€ here in the Charente. Both are 4 bed/2 bath houses.

If you have additional questions or concerns, you may want to check out the French government’s official information website. We wish you the best of luck with your property plans, and if you’re thinking of buying a second home, we’re always here to help!