Real estate taxes: France could inspire these avenues of reform

While the idea of ​​French property tax reform for the umpteenth time is still relevant, it may be useful to delve into the study that the Organization for Economic Co-operation and Development (OECD) (OECD) dedicates to property taxes in its 38 members. It states. While acknowledging that these taxes do indeed play a major role in these countries, the report is quick to point out that there are nonetheless “A large margin to enhance its efficiency, equity and revenue potential”. Not surprisingly, by noting growing real estate inequalities and emphasizing the widening gap, particularly in France, the report generally points to higher taxes on the richest.

Read also – Percy considers limiting increase in property tax for owners

In detail, the only real relief proposed pertains to transfer fees (those that make up the bulk of what is incorrectly called notary fees). The same argument was made briefly by candidate Macron before he came to power (before he completely forgot about it). “The reliance on transaction taxes is often significant, while they tend to limit residential mobility and even shift wages”, notes the report. But apart from this “bad” tax, most other taxes can be raised according to the OECD. Here are the suggested paths

property tax? Not updated enough

Before Emmanuel Macron chose to abolish the housing tax for all, there was talk of reforming rent values, in order to base property and housing taxes on more modern items. Apart from a few experimental areas, these values ​​are based on a method of calculation dating back to the 1970s. Ordinary property values.

capital gains tax? Stop exempting the most expensive primary housing

The report proposes restricting the tax exemption to real estate capital gains that exceed a threshold to be determined. The opportunity to “ensure that the largest capital gains are taxed to promote tax escalation and reduce inflationary pressure on housing while still exempting capital gains from the principal place of residence of most households.” An idea that Bruno Le Maire seemed to possess for a while, before giving up.

Supporting new real estate? Not very effective

The report notes that this type of aid, like Pinel in France, has been advantageously replaced “Support the provision of housing or a more efficient use of existing stock, through tax and non-financial measures”. This route is particularly preferred to reduce price hikes. It is true that the inflationary effect of Pinel has been regularly condemned in recent years.

Help for energy regeneration? It is better to target low-income families

The Organization for Economic Co-operation and Development (OECD) is calling for “better targeting” to help replenish energy to ensure it affects “low-income households”. This is also the way MaPrimeRenov has chosen in the latest version to reduce or even eliminate the remaining fees for the most modest households.

International real estate income and platform? You don’t control it enough

It is necessary to “strengthen reporting obligations” in the end refers to the Organization for Economic Cooperation and Development. The organization specifically targets third-party structures, which is a neat way to conjure up Airbnb-type platforms and all the other sites that make it possible to monetize real estate services. It also calls for better exchange of tax information internationally to “ensure that property taxes are properly applied”.

see also – event]real estate: what are the advantages of investing in bare property

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