The property tax for Irish people with a second home in France may increase.

Living in France seems set to become a bit more expensive after President Emmanuel Macron decided to allow more local councils to raise the property tax on second homes by 60 percent. This means that Irish homeowners with a second residence in France may face a sharp increase in tax expenses, and all rugby fans traveling to the country in the coming weeks might think twice about permanent stays if they are charmed by the (cheap) wine and food offered on-site.

The increase in taxes is occurring against the backdrop of rising tensions due to a lack of housing supply and a growing number of people with second homes, with the tax seen as a disincentive for those considering purchasing a vacation home. This is particularly relevant in resort towns; for example, in Brittany, where about one in ten homes is a second residence, over 150 local councils have been granted permission to impose an additional tax.

Until this year, all property owners faced a 'housing tax', a type of local property tax. However, this year it was changed to apply only to those with second homes, and last month it was announced that instead of limiting the additional tax to around 1,000 councils - usually in urban/maritime areas - it had been extended to a further 2,263, bringing many more homes and their owners into the tax net.

This additional tax can now be applied at a rate of 5 to 60 percent at the request of the local council. "The increase in property tax is intended to cover inflation, which reached 5.2 percent in France last year.

Other cities, such as Lyon and Bordeaux, apply a maximum rate of 60 percent, while resort towns like Saint-Jean-de-Luz and Biarritz in the Basque Coast region, as well as Nice and Antibes along the Côte d'Azur, have also opted for increases up to 60 percent. Now a whole range of new local councils will have the opportunity to raise taxes to increase revenue.

The average property tax last year was 772 euros for a house and 941 euros for an apartment. If the full increase is applied, it will raise the average expenses to over 1200 euros. Additionally, French property owners will also face an increase in the property tax, or "taxe foncière," which is applied to all properties, as it has been raised by 7.1 percent, while in some regions the increase will be even higher.

“Any Irish property owner in France will feel the impact of this,” says Moroyan, adding that this is the largest annual tax increase since 1986.