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French taxes will cost us more on French holidays

July 6, 2012 by  
Filed under Holidays

The price of French holidays is expected to rise as president Francois Hollande plans to increase tax on foreign homowners.

The news comes from the announcement recently made for the need to reduce the countries large budget deficit and the only way to do this is to increase taxes.

And it seems that the only taxes that will be raised are those that we British holiday home owners pay. According to the French finance minister, around 60,000 properties will be affected when a tax increase of around 20 percent will be added to rental prices and 19 percent to sale prices. So how can you get around this making it more cost effective for you?

It seems that if you already rent out your property in France or you are planning to, you have to increase the price to cover your cost. Selling isn’t really an option as you will lose out here too. Those of you who choose to sit tight and just accept the increase taxes may be all right if you have a small or nonexistent mortgage on the property.

This whole idea the French government have right now could actually back fire on them when Brits decide to visit other holidays instead as it will be cheaper in the long run. A treasury source from the British government has said “We will need to study the details. But we will of course challenge any proposal which breaches European single market laws and anti-discrimination rules.”

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