New tax on holiday homes now scrapped


French authorities have dropped proposals to tax non-residents on their second home in France if they did not offer the property up for long-term rental.

This would have affected up to 360,000 owners, half of whom were British. Fears that the new tax would have a detrimental effect on tourism caused the French government to make a U-turn.

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The new tax would have generated €176 million a year. However, concerns were raised that the tax might deter foreigners from buying property in France and this could affect revenues from tourism. France attracts 75 million visitors a year and is the most visited country in the world. It maintains the third largest income in the world from tourism.

The French government also appreciates the fact that foreign property owners, particularly the British help rejuvenate rural areas of the country and restore derelict properties.