Over one year, it increased by 9.3% in the 200 largest cities in France. This is the assessment drawn up by the National Union of Real Estate Owners, all regions are affected, but the municipalities are not necessarily responsible for this increase.
Published
Update
Reading time :
4 mins
:quality(50)/2023/10/19/maxnewsspecial788616-6530c162cd274368428311.jpg)
The property tax is a local tax, payable once a year, which applies to all owners of real estate. The National Union of Real Estate Owners (UNPI), which represents private real estate owners, puts the increase in this tax at 26.5% over ten years (precisely between 2012 and 2022), or four times more than the increase in rents. . The UNPI is calling for the establishment of a capping mechanism.
All regions are affected. Many mayors claim that their municipality has the lowest land rate in France. It’s true. But the important factor to consider is the rate of increase. We can start from very low, experience an increase, and remain at a level lower than other municipalities. The argument is very political, much more questionable on a financial level.
>> Real estate: what changes in the new zero-rate loan formula, extended until 2027
For example, in Paris, the property tax is historically low but it has just recorded an increase of almost 61% over one year. The same goes for Grenoble where the property tax is among the lowest in France but it has increased by 33% over one year, according to the UNPI. Of the 200 largest cities in France where the property tax has increased, only 35 have increased it voluntarily. The president of the Association of Mayors of France, David Lisnard, recalled this on Wednesday October 19 on franceinfo: 86% of municipalities have not increased their rates this year.
Real estate prices are subject to inflation
The increase in tax is mainly explained by the increase in rental values on which the rates apply. Real estate prices are also subject to inflation and this is automatically reflected in the property tax, even if the mayor of your municipality has decided not to increase it. France today has 37 million owner households, most of them what we call “average” owners (young couples or families without particular wealth), which makes the property tax a highly political tool in terms of local.