In France, property taxes rise annually. In 2025, several municipalities have declared a cut in their local taxes. It is anticipated that notary fees will see an upward adjustment.
A year of defiance? Over the last decade, there has been a notable rise in property tax across many municipalities, frequently attributed to inflationary pressures. On average, this tax has seen a 30% increase during this period, as noted by L’Internaute. The past couple of years have witnessed notably steep rises. Nevertheless, this trend may well shift in 2025.
In summary, property tax is anticipated to rise further, albeit at a considerably more tempered pace, with projections indicating an increase of no less than 1.8% throughout France.
Nonetheless, there are a handful of exceptions. As noted by Le Figaro, the period preceding municipal elections frequently witnesses various adjustments.
Indeed, “property tax increases tend to be less pronounced at the end of the term, as projects and works are frequently in progress and have already been allocated the necessary resources,” explains an elected official in an interview with the national daily. A number of local councils have already declared cuts to their property tax rates.
In Cannes, for instance, Mayor David Lisnard has opted to decrease the portion collected by the municipality by 3.6%. By the year 2025, we can expect a rise in rental values of 1.7% for all taxpayers, irrespective of their residential location. In response to this rise, certain cities, Cannes among them, have chosen to lower their tax rates. As a result of this measure, the overall property tax is expected to see a reduction of 2%.
As reported by L’Internaute, several other towns, including Roquebrune-sur-Argens, Vallauris, and Basse-Goulaine, have similarly declared a reduction in their property tax. Local authorities have until April 15 to establish the property tax rate for 2025, with potential further reductions expected to be revealed in the weeks ahead.
Concurrently, departments are strategising to augment their portion of notary fees. At present, when acquiring an existing property, notary fees account for approximately 7% to 8% of the property’s price, with 4.5% of that sum directed towards departmental funds.
By the year 2025, departments will have the opportunity to raise their allocation to 5%. This rise is expected to furnish local authorities with an extra stream of revenue, particularly as they grapple with mounting budgetary challenges.
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