Published: 9th September 2013
A statement released yesterday by the French government has confirmed that owners of holiday homes in France will soon be subjected to a new property tax. This comes as the authorities seek new ways to increase income tax payments from overseas holiday home owners. The new proposals, which are still to be officially approved by the French government, looks set to increase income tax on holiday home owners from 20% up to 35.5%. Capital gains tax is also set to increase from 19% to 34.5% if the proposals are approved.
The new are seen as one of a number of new initiatives launched by President Francois Hollande, as he seeks new ways to supplement government income.
Government ministers in Britain have already responded to the new proposals, by saying that they will challenge the new from the new French president, claiming that the new initiative breeches European single market and anti-discrimination laws.
If the new proposals go ahead, then the task of rental accommodation in France would be applied retrospectively from 1 January.