Paris authorities revised the property tax
This year the local authorities of Paris raised the property tax, and its size increased from 13.5% immediately to 20.5%. Now the owner of an object of 50 square meters will pay not 438 euros, as before, but 665 euros.
The reason for the increase in the rate the municipality has called the influence of global factors, including climate change, inflation, and rising energy prices. At the same time, the mayor of Paris said that before the increase the property tax was the lowest in France. In most major cities of the country, it was more than 41%. In addition, in the capital, the rate has not been revised since 2011.
The tax requires all owners of French real estate once a year to pay a certain amount. The rule applies to everyone, regardless of whether a person lives there or not. However, in Paris, there are exceptions for a number of owners. For example, the owner has the right not to pay tax if he/she carries out the reconstruction of housing in the period from 2020 to 2026 in order to make it comply with energy standards. Also falling under the exception is the category of Parisians who receive social benefits, and people over the age of 75.
Paris is one of the most expensive cities in the world. The real estate market here is regularly growing, which reduces the opportunity to buy or even rent an apartment for people with low and average incomes. To solve this problem, the local authorities are implementing an affordable housing program. Thanks to it, by the end of last year, 25% of all residences in the French capital can now rent to people with low incomes. The success of the program has encouraged authorities to set more ambitious goals. And now the strategy calls for an increase in affordable housing to 40% by 2035. Under the new program, low-income renters can afford to rent 30% of all apartments in Paris. Another 10% includes housing that is intended for middle-income people and is rented at below-market rates.
Rent has been rising regularly in Paris for about 20 years, and the problem continues to get worse. Therefore, one of the priorities for the municipal authorities is to make the real estate market more affordable. However, in order to realize this goal, it is necessary to find space for the construction of new facilities, which are several thousand housing units.
One of the options the authorities are considering is the conversion of outdated office space, garages, or hotels. The commission is also evaluating commercial properties that could be converted into housing.