IRS greed is an intriguing vice.

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 house in Nice 2 807 560,00 $

France,Nice

3 Bedrooms

2 Bathrooms

150 м²

Sale villa in Beaulieu-sur Mer 2 185 567,00 $

France,Beaulieu-sur Mer

4 Bedrooms

4 Bathrooms

270 м²

Sale flat in Nice 818 346,00 $

France,Nice

1 Bedroom

1 Bathroom

64 м²

Sale flat in Cannes 5 134 217,00 $

France,Cannes

5 Bedrooms

255 м²

Sale house in Cannes 2 699 222,00 $

France,Cannes

4 Bedrooms

230 м²

Sale house in Cannes 3 845 014,00 $

France,Cannes

4 Bedrooms

284 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...