'IRS greed is an intriguing vice.'

Жадность налоговой службы - козни порок.

Information provided by Le Revenu, 07/11/2023 at 09:05:05

Taxes on real estate profits are squeezing the real estate market. (© Fotolia)At a time when the real estate sector needs free circulation, due to a shortage of housing, whole segments of the market are being squeezed.

Time is money. Everyone knows this quote attributed to Benjamin Franklin, writer and scientist, inventor of the lightning rod and one of the Founders of the United States. And when he gave this "advice to a young merchant" in 1748, he certainly didn't think that property owners in France would use it, sometimes to the point of absurdity.

For years, the state has been building its secret machine that freezes part of the real estate market while France slowly but surely''is plunged into a severe housing crisis. Those who have a second home or rental accommodation, own a house in shared ownership or have inherited an apartment must wait twenty-two years to avoid paying tax on the sale and thirty years to avoid paying the inevitable social security contributions!"

The gain on the sale actually benefits from the length of time of ownership.

Sale flat in Paris 1 417 061,00 $

France,Paris

3 Bedrooms

90 м²

Sale flat in Strasbourg 1 265 124,00 $

France,Strasbourg

6 Bedrooms

1 Bathroom

279.57 м²

Sale house in Antibes 1 677 647,00 $

France,Antibes

1 Bedroom

1 Bathroom

50 м²

Sale flat in Cannes 2 320 507,00 $

France,Cannes

2 Bedrooms

1 Bathroom

51 м²

Sale flat in Lyon 148 810,00 $

France,Lyon

2 Bedrooms

1 Bathroom

35 м²

Sale flat in Nice 625 083,00 $

France,Nice

3 Bedrooms

99.41 м²

The more time passes, the lower the taxable gain. For tax, an annual rebate of 6% applies after the fifth year and up to the twenty-first year, and then a 4% rebate in the twenty-second year, resulting in full income tax exemption after twenty-two years. For social contributions, there is an effective...