Roche & Cie

Paris : Increased taxes on Secondary Residences

The Council of Paris has put in place a strong increase in taxes on vacant properties and secondary homes.

Constantly in search of housing, Anne Hidalgo and her advisers to the city of Paris voted, Monday, June 6, 2016, a provision to increase taxes on vacant properties and second homes. This political postulate of the left will shortly be presented to parliament.

These vacant housing and second homes that currently taxed for the first year 12.5% of the cadastral rental value – much lower than market prices – and 25% for the second year would increase to 50% and 100% for same period.

Today, according to the PCF elected Jacques Baudrier, quadruple that tax will necessarily motivate owners of vacant apartments to put them back on the market.

100,000 vacant housing?

With some 100,000 vacant housing, the council of Paris also proposed the doubling of the tax on second homes, the latter having already been increased in 2015 by 20% compared to the common housing tax. It could well double.

Furthermore, the City of Paris wished to be quadrupled – from 25,000 to 100,000 euros – the fine incurred by a landlord renting a furnished apartment type Airbnb and HomeAway outside of existing regulations. The city council is considering in this regard to cut through these platforms access to ads that exceeded four months of rent.

These proposals can come into force only after a supplementary budget law in 2016 or in the 2017 Finance Act