Housing taxation: property tax, Airbnb, Pinel, what will change in 2024

Tax on vacant apartments extended

In order to encourage owners to rent or sell unoccupied properties, a tax on unoccupied housing was created in 2013. It targets owners or users of dwellings that have been unoccupied for at least one year. in 2023 1,140 municipalities located in tense areas were eligible to apply this tax after the municipal meeting.

This number will increase significantly next year as the National Assembly voted to update the list of cities eligible for this tax. In 2024, it will have at least 3,693 cities the possibility of introducing a tax on unoccupied housing, including 294 new municipalities located in urban districts with over 50,000 inhabitants. You can find all the cities that will be eligible in 2024 in our article.

Property tax will increase

Bad news for owners! PUSH Property taxes are expected to rise in 2024 because the cadastral rent values, which serve as the basis for calculating real estate tax, should increase by at least 4% as of January 1. This spectacular increase can be explained by inflation, which according to INSEE’s latest preliminary estimate has remained at 4% this year.

The growth of consumer prices, which directly affects the rate of revaluation of cadastral rental bases. In 2024, the amount of property tax should be increased by at least 4% for the owners. And that is provided that the council of their village does not vote to increase the tax rate…

>> Our service – Real estate price estimate (immediate, free and non-binding)

Planned tax benefits of the Pinel system

The Pinel system, the star of tax incentive mechanisms for investment in the rental of new properties, will definitely disappear in 2025. The government confirmed this last June on the occasion of the report on the conclusions of the National Council of Renewal (CNR) Housing.

We remind you that this is a mechanism of tax incentives for buyers of new houses. In exchange for a tenancy commitment with limited rent for 6, 9 or even 12 years, the owner of the new house is given a very significant tax reduction, in proportion to the number of years of the lease.

So you still have one year to use Pinel, but be careful the tax benefits of the mechanism have been reduced from January 2023, the tax reduction increased to 10.5% of the purchase price of the property for an owner’s commitment to rent at a capped rate for 6 years (compared to the original 12%), to 15% for a 9-year commitment (compared to 18%) and 17 .5% for a 12-year commitment (previously 21%).

And these tax cuts will be further reduced in January 2024 (to 9%, 12% and 14% respectively) before the mechanism expires for good in 2025.

Regulations on short-term rentals should be tightened

Cross-party bill aimed at ‘redressing the imbalance in the rental market’ in the embattled area will be examined by the National Assembly in early 2024. The aim of this text, supported by Rennes MP Annaïg Le Meur, is to promote “classic” long-term rentals by better regulating furnished accommodation for tourists, especially in busy areas.

In particular, it plans to reduce the tax discount on the rent received, from which owners of furnished tourist accommodation benefit. Currently, rental companies that offer a property classified in a tight area on an Airbnb-like platform benefit from a flat cut of 71% of the rentals received, compared to 50% for classic furnished rentals and 30% for unfurnished rentals. ​​

The proposed law plans to unify this rate at 40% for all types of housing, with the exception of country cottages, guesthouses and properties located in ski resorts. Note that the text is supported by Prime Minister Elisabeth Borne.

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