MPs back capital gains tax increase

The government is trying to raise extra funds

The députés voted for a tougher property CGT regime – but dropped a proposed new holiday homes tax

AN EXTRA 2% is to be added to property capital gains tax from €50,000, however a proposed new tax on holiday homes has been dropped.

As part of the third “corrective finance law” for 2012, which has had a final vote from the MPs, capital gains on property – which only affects second homes – will have an extra 2% tax levied on them from €50,000, then 3% from €100,000, then another 1% per €50,000 up to €250,000 (reaching 6% maximum).

The original proposal was for 3% from €100,000 and then 5% from €150,000.

These levies would be on top of the ordinary capital gains tax at 19% on the gain (that is, the difference between the sale price and the purchase one).

They are meant to compensate for the removal of a tax on bodies that manage social housing, which was brought in by the last government.

On the other hand, the MPs have decided they will not pursue a plan that could have seen a new tax equivalent to 20% of the taxe d’habitation charged on “under-used homes” (ie. second homes) in “high-pressure areas” including the Swiss border, Paris, Lyon and the Côte d’Azur.

Socialist MP Christian Eckert, the law’s rapporteur, said the MPs had decided “it is not a good idea to add a state tax on top of a local one”.

The law will now be discussed by the senators before it is passed definitively.

More articles from Archive
More articles from Connexion France


Loading some business profiles...

Loading some classifieds...