One of the big promises Socialist Party Leader and French President Francois Hollande pledged during his campaign was that he wouldn’t penalize foreign property owners with steep taxes.
And yet, according to a story from The Telegraph, that’s pretty much exactly what he’s proposing to alleviated the country’s budget deficit.
We’ll have to wait and see what becomes of it, because some French politicians are claiming the tax is unconstitutional, the story claims.
France has always been a popular second home destination for the jet setting crowd, but with steep increases in rental taxes and capital gains on vacation home sales, will a chic apartment on the Rhine remain a la mode?
We’re not talking about chump change, either. If the tax increase goes through, foreign second home owners could see almost double the levies against their properties:
Tax on rental income would rise from 20 per cent to 35.5 per cent, and capital gains tax on property sales would rise from 19 per cent to 34.5 per cent. The extra in each case is being labelled a “social charge”.
What do you think? Does this effectively prohibit foreign vacation home ownership? What will this do to the second home market in France?