French President Emmanuel Macron's government has enabled thousands more local authorities to impose council tax surcharges of up to 60% on second homes. While this year saw the elimination of council tax for primary homeowners, those with furnished second homes, used only part of the year, are still liable for it. This change affects an estimated 86,000 British second homeowners out of a total of 3.6 million second homes in France.
Expanded Powers for Local Authorities:
Under the revised system, 2,263 additional communes, or local administrative districts, have been granted the authority to apply council tax increases. The range of increase varies from 5% to 60%, with changes to be implemented next year. These measures are being enacted in areas where the government perceives a "marked imbalance" between housing supply and demand.
Rationale and Impact:
The changes mirror efforts by UK local councils to raise taxes on second homes to ensure housing availability for local residents. The tax is determined based on the potential market rent of the property. Additionally, taxes specifically targeting vacant properties have increased, with rates rising to 17% after the first year and up to 34% after the second year. Other tax categories exist as well, but the standard rate has not increased in tandem with the others.
Brexit and Ongoing Changes:
British expats with holiday homes in France have faced a series of changes, including a 90-day limit for stays without a visa. This means homeowners can't stay in France for more than 90 days within a 180-day period without proper documentation. The imposition of council tax surcharges further impacts British property owners, as France seeks to address housing challenges and increase local revenue.
The French government's efforts to address housing imbalances and bolster local finances have led to increased council tax surcharges on second homes, affecting many British property owners. These changes highlight the evolving regulatory landscape in the wake of Brexit and France's broader housing policy objectives.