Long-term real estate gains subjected to zero taxation after 10 years, perceived as a "tax windfall for tenants"
Deputy Eric Ciotti's latest bill is stirring up a storm in the National Assembly. It's all about revamping the housing market, but some political groups think it's more like a tax bonanza for wealthy property owners and landlords. The bill, set for committee examination on June 18, proposes slashing the detention period needed for full tax exemption on real estate gains from the current 22 to 30 years to a mere 10 years.
That's right! With this move, Eric Ciotti is trying to encourage owners to unload their properties faster, potentially easing the current housing shortage crisis. But some sections of the political spectrum aren't keen on the idea, arguing it amounts to a massive fiscal handout to property owners and landlords. They claim the taxation of real estate gains brought in 3 billion euros in 2024, a significant chunk contributing to funding Social Security and the state budget.
Eric Ciotti's bill also tackles another burning issue: the ban on renting out energy-inefficient properties. Under the 2021 Climate and Resilience Act, properties graded G and F on the Energy Performance Diagnosis (DPE) cannot be rented out. Eric Ciotti thinks small landlords need more time to adapt their properties to energy performance standards and has proposed a moratorium on the ban. However, critics argue that keeping inefficient properties in the rental market goes against providing tenants with good living conditions and preserving their purchasing power.
So, brace yourselves for a heated debate as the National Assembly delves into Eric Ciotti's bill. With supporters arguing for a boost in the real estate market and critics warning about fostering inequality, only time will tell if this bill will become law. Stay tuned!
The label of tax bonanza for wealthy property owners and landlords continues to be debated, as critics view Eric Ciotti's bill as providing a massive fiscal handout to this group due to the proposed reduction in the detention period for full tax exemption on real estate gains, potentially generating 3 billion euros for Social Security and the state budget.
Investing in making energy-inefficient properties comply with standards could become more appealing, as Eric Ciotti's proposal for a moratorium on the ban on renting out such properties offers small landlords more time to adapt. However, this move is met with concern from detractors, who assert that keeping these properties in the rental market goes against providing tenants with good living conditions and preserving their purchasing power.
