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20% Tax on Second Homes Comes into Affect in Saint-Tropez Area

98 out of 1200 communes have agreed to the new tax increase

featured in News & reviews Author Pam Williamson, Saint-Tropez Editor Updated

Last Autumn the government announced plans for a new 20% increase in tax on second homes across France. Communes were then given until February 2015 to make their decision whether to opt in or out of the scheme.

The municipal authorities of Nice and Cannes instantly refused the new tax, saying that they did not want to impact further on an already struggling property market. Since then 98 out of the 1200 communes have decided to opt-in tot he scheme and the new tax will come into force this Autumn.

The areas that will be affected are as follows:
Var region - Bandol, Le Beausset, La Cadiere-d'Azur, Ollioules, Le Revest-les-Eaux, Saint-Raphael, la Seyne-sur-Mer, Six-Fours-les-Plages and Saint-Mandrier.
Cote d'Azur region - Antibes, Auribeau-sur-Siagne, Le Bar-sur-Loup, Beaulieu-sur-Mer, Beausoleil, Cabris, Le Cannet, Chateauneuf-Grasse, Eze, Falicon, Mougins, Pegomas, Peymeinade, Roquefort-les-Pins, Sainte-Agnes, Saint-Paul-de-Vence, Theoule-sur-Mer, Le Tignet, Valbonne, Vallauris, Vence, Villefranche-sur-Mer and Villeneuve-Loubet.

The taxpayers of these towns will find a 20% on their council tax bill (tax d'habitation) for their second home. The goal of this tax increase is to release homes and housing that are not occupied, and also to offer new resources to the municipalities who have seen a reduction in their state endowment.

In Paris, it has been estimates that this measure should bring in about €15 million of additional revenue to the municipality.