Pierre Laurent, President of FNAIM Côte d’Azur, reacts strongly on behalf of all FNAIM real estate professionals in the department to the announcement of measures concerning the taxation of capital gains on property as outlined in the austerity plan presented on August 24 by François Fillon.
Indeed, although the exemption regime for primary residences is not yet affected, for all other properties (second homes and rental properties), the elimination of the 10% annual allowance from the fifth year of ownership severely penalizes landlords.
In fact, these landlords, who often have held their properties for a long time (10 years, 20 years, or more), are now penalized upon resale.
“This measure is an unfair guillotine that falls on sellers of second homes or rental properties.
Once again, the State targets investors, mainly from the middle class, by making them bear the heaviest burden of the austerity plan, with an effort of 2.2 billion euros more than all other savings measures.
These owners, the vast majority of whom hold only one property in addition to their primary residence, which they planned to resell at retirement to have additional income, now have to completely rethink their asset strategy.
Previously fully exempt from capital gains after 15 years of ownership, they now have an amount to settle upon sale, which can amount to several thousand, or even tens of thousands of euros.”
“It is regrettable that the government did not distinguish between owners of a non-rented second home and those who contribute to housing workers and students by renting out their property.”
Pierre LAURENT criticizes this new tax, which was decided without any consideration for the essential role of real estate in the French economy, taken without any consultation with professionals, and which risks casting a shadow over price clarity…
Perhaps the only positive point: “These owners will no longer be tempted to keep their property for 15 years before selling it tax-free, since there will no longer be a total exemption but only an annual allowance, based on inflation and therefore much lower than the 10% we knew.”
This could lead to a more fluid market, with the hope of a more abundant supply that could result in price stabilization and the maintenance of the rental offering, with properties being retained for this use instead of being sold.
In any case, this measure will not be without impact on the real estate market in the coming weeks.
