How Macron is shattering the dream of a holiday home in France: Brits face a 60% price increase

housesinFrancecan choke on their croissants when they get their last tax bill on thereal estatein the coming weeks. French government tightens property taxes for owners of country houseshousesin popular tourist areas. Some may find their bill has increased by 60 percent as President Emmanuel Macron is cracking down hard on second-home ownership in areas where there is a housing shortage.

Main taxes in France

There are two main property taxes in France, taxe foncière and taxe d'habitation. Taxe foncière is a property tax and is paid by the ownerreal estateTaxe d'habitation, occupancy tax, paid by the tenant. Taxe d'habitation, a tax on accommodation, is paid by the tenant. It is similar to council tax in the UK and is spent on utilities.

Tax increase

Last year, the tax averaged €772 (£660) for thehousesand €941 (£800) for theapartments. But for owners of a single dwelling, this tax has now been abolished from 2023. However, it is still levied on second homes and additional homesreal estateincluding Britons owning a secondhouseFrance.

This particular tax could be supplemented by a surcharge of between 5 and 60 percent in 2024.

Implications for the British

One thing is for sure: property taxes are rising for second home owners in France, and it will affect thousands of Britons with country homes there. In Brittany, for example, 156 commissions have been authorized to increase the residential tax by 60 percent, where about 12 percent of the region's properties are second homes. It is estimated that around 8,900 Britons could be affected by the tax increase.

Examples from life

• Lebby Ayres, 52, who owns a second home in France with her husband, is planning an 11.5 percent property tax increase.
• Kate Cherry, 46, who owns a townhouse in Occitania, expects a property tax increase.

The property tax hike will also be felt by Britons who are already finding it difficult to spend time in their country homeshousesin Europe. Thanks to Brexit, Britons can no longer spend more than 90 days in EU countries in any 180 days.

Real estate sales

Susan and Chris Beasley recently soldhousein France due to increasing bureaucracy and restrictions on length of stay. Their chalet in the French Alps had a separateapartment. The couple paid approximately €1,500 a year in residence tax and €1,950 in property tax.

“We loved our properties but we were hit by the pandemic which affected bookings. Also after Brexit we could no longer stay there all season and run a seasonal chalet business. We decided to sell and use the money to invest elsewhere,” says Susan, 68.

The couple paid approximately €1,500 a year in residence tax and €1,950 in property tax.

“I truly believe that owning areal estateabroad is a good thing, but you have to take it with your eyes open, understanding how the rules work and that they can change depending on the government at the moment,” Susan adds.