According to the French Tax Administration 66 out of the 101 departments in France have elected to increase their house transfer tax rate from March 1 2014. The house transfer tax is imposed on transactions involving older property.
Other expenses in connection with a house purchase have also risen. Notary fees have risen from 7 percent to around 7.7 percent in the majority of departments in France, thereby significantly increasing the cost of buying an apartment, house, or office.
France’s 2014 finance law provides that local authorities may raise their departmental transfer tax from 3.8 percent to 4.5 percent between March 1, 2014, and February 29, 2016. The measure is intended as a revenue-raiser for cash-strapped departments, hard hit by budget cuts, and soaring welfare costs.
It is expected that most of the other departments that have frozen their levies will – eventually – raise their fee. For the moment, however, it appears that some are waiting until after the municipal elections before striking.
