Roche & Cie

Secondary homes and empty dwellings in Paris are likely to be overtaxed

09 Nov 2016

At its meeting on 7 November, the members of the Paris Council agreed to introduce an increase in taxes on secondary homes and empty dwellings in the capital city, a measure already mentioned last June.

Indeed, the majority represented by Mayor Anne Hidalgo voted in this direction during the debates of budgetary orientation for 2017 and expressed the wish to raise the additional tax to the housing tax rate. The second homes are estimated today, intra muros, numbering 90,000.

The current rate of this additional tax, set at 20% of the residential tax, would be “far too low” to induce homeowners to rent or sell their homes. That is why the city of Paris would like to align the additional tax on the housing tax.

Paris would also like to increase the tax on vacant dwellings, the number of which could reach 100,000. The project would be to pass this tax currently from 12.5% of the cadastral rental value to 50% in the first year and 100% from the second year.

On the other hand, the Paris Council wished to multiply by four the fine incurred by an owner renting furnished accommodation type Airbnb outside the existing regulations that is more than four months a year. This would thus increase from 25,000 to 100,000 euros.

Amendments to this effect are in particular carried by the Communists to the draft budget law 2017, currently being debated in Parliament.

Cabinet Roche & CieChartered Accountant in France (Lyon).
Specialist in Real Estate and Non-Residents’ taxation.