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PROPERTY

The ever-growing hidden cost that French property buyers need to know about

France’s housing tax has skyrocketed over the past decade, increasing by more than 30 percent between 2009 and 2019 new data shows.

The ever-growing hidden cost that French property buyers need to know about
Paris has the steepest property prices in France. Photo: AFP

While buying property in France – especially rural France – can be comparatively inexpensive, there are some hidden costs that homeowners need to be aware of.

And one of these is the property owners' tax – known as taxe foncière – which has increased by 31.4 percent, according to numbers revealed by French National Union for Real Estate Owners (Union Nationale des Propriétaires Immobiliers) in French daily Le Parisien.

 

 

The biggest spike happened the first half of the decade and the last five year’s increase was less significant, of 12.1 percent in total. 

“That’s still huge,” Pierre Hautus, Director of UNPI told Le Parisien, adding that the tax hike was six times bigger than the rent increase over the same period of time. 

Who is affected?

Those who will have felt the impacts of the tax increase on their wallets are those who own a property in France and therefore are subject to the annual taxe foncière.

Whereas the French government is in the process of phasing out the taxe d’habitation – the tax paid by those living in the property – homeowners still have to pay the taxe foncière.

READ ALSO Taxe foncière: What exactly is the French property tax and do I have to pay it?

What about second home owners?

Second home owners might have felt the consequences of the tax hike even more than first home owners, as several French cities also charge a surtax for second homes.

And the surtax might be a concern for more and more owners in the future, as new cities implement it every year, according to UNPI.  

The union said it was currently investigating the possibility of second home owners being exempt from paying the taxe foncière if they had not haven’t been able to go there because of Covid-19 restrictions, but at present it is still due.

READ ALSO How has Covid-19 impacted house prices in France?

Why the increase?

One of the reasons is that abolishing the taxe d'habitation has led to some local authorities raising the taxe foncière in order to make up for their loss of income.

According to the UNPI, this could mean that the taxe foncière will continue to increase in the future as the government works its way to zero taxe d’habitation by 2023.

Another reason is that the property tax each year is revalued based on rental prices. Because rental prices have gone up the past 10 years, so has the property tax.

Looking at the broader trend over the past decade, the tax rate grew steadily from 2011 to 2015, before spiking by over 5 percent in one year in 2016.

Since 2017, the rate has been decreasing slightly, and in 2020, “things calmed down because of the municipal elections,” according to UNPI.

No French towns or cities increased their property tax in 2020, according to UNPI.

Is it the same across France?

Not all cities apply the same rate to calculate the taxe foncière.

While most areas in France saw their taxes increase last year, some départements saw a drop, according to UNPI, which mentioned Yvelines (in the greater Paris region), Deux-Sèvres (centre-east in the Nouvelle-Aquitaine region) and Alpes-Maritimes (which is home to Nice).

READ ALSO Property prices: The cheapest areas of France to move to

According to the French Finance and Strategy Cabinet, which recently published a report detailing the development of the taxe fonciere rate, owners in some départements (5 percent of the total) saw their tax rate decrease in 2020.

A majority of French départements have kept their tax rate stable since 2011, according to the report, with only 8 percent of them increasing the rate between 2018 and 2020.

However, keeping the rate stable does not imply that the tax itself remains the same, it simply means that the tax grows or decreases with the same pace from one year to the next.

Did you remember to pay your tax this year?

Property owners have until October 20th at midnight to pay the taxe foncière online.

READ ALSO French tax calendar for 2020

 

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HEALTH

How to get help in France with dementia and memory loss

It’s not something anyone wants to consider, but older people especially are susceptible to suffering some form of mental decline including dementia - and there is help and support out there in France.

How to get help in France with dementia and memory loss

If you are concerned that a loved one or friend may be showing signs of mental decline, here’s an overview of the system in France and where you might go to get help.

What to do if you think a loved one has dementia

First things first, dementia is not an illness. It is, more accurately, a catch-all term used to describe a group of symptoms that affect memory, thinking and social abilities, linked to one of a number of medical conditions of the brain, including Alzheimer’s, or by traumatic brain injuries. Symptoms vary according to the part of the brain that is damaged.

Dementia can occur at any age, but mainly affects older people. It is the cause of more than half of referrals to long-stay centres.

Britain’s NHS website lists early dementia signs to be aware of. If you are concerned that a loved one is displaying one or more of these signs, then you should seek out a formal diagnosis. Such signs do not prove the presence of a neurocognitive disorder, but if they do, early detection will make things much easier.

The first step – as always – is to arrange a consultation with your GP, who may refer the patient to a specialist.

READ ALSO How to make a doctor’s appointment in France

What happens in the specialist consultation

A referral will generally see the patient go to a local Consultation mémoire de proximité (CMP) in a Centre mémoire de ressources et de recherche (CMRR), where a specialist medical team can diagnose dementia and memory disorders.

The diagnosis will follow a series of cognitive assessment tests as well as, perhaps, brain scans and physical tests, depending on the outcome of the cognitive testing. The specialists will give you all the information you need at the time.

If a form of dementia is diagnosed, it’s understandable that you’ll be concerned about what could and should happen if your loved one can no longer take care of themselves.

As with early detection of a degenerative brain condition itself, it’s important not to leave discussions about the future too long. Do it before it’s too late is the best advice, even though it’s a conversation (or a series of them) that you will not want to have.

Financial and legal affairs

France has several administrative options for legal arrangements similar to power of attorney or guardianship – known by the umbrella term of mesures de protection judiciaires (judicial protection measures) – as well as less formal steps for those who are unable to make decisions in their daily life.

READ ALSO GUIDE: Guardianship or power of attorney options in France for elderly or vulnerable people

It is worthwhile noting, for example, that power of attorney in France can be separated into different individual areas – banking, administration, documents and management related to assets/inheritance, and voting – or granted for all sections.

It is also a good idea to check any life and health insurance policies. France insurance companies offer something known as Assurance dépendance, which pays out when holders are unable to care for themselves.

READ ALSO Health insurance in France: What you need to know about a mutuelle

Most policies insure against partial and/or total loss of autonomy. The exact sums – paid either as a lump sum or monthly – depend on the terms of the policy and degree of incapacity and can cover adaptations to a home to allow for the care of a dependent person, home help, specialised transport – even funeral expenses.

Meanwhile, families caring for a family member with dementia may also be eligible for means-tested Allocation personnalisée d’autonomie

READ ALSO French government’s seven-step plan to improve end-of-life care

Help and support

It is worthwhile getting in touch with agencies and associations, France Alzheimer for example, once you have a diagnosis. 

They will be best placed to help you navigate the French system for care and assistance – and even just provide emotional support when you need it.

They can also guide you through the CAF benefits that you may be eligible for, or help you apply for visits from a home help or aide domicile.

If the time comes when the person can no longer live at home and residential care is required, here’s a look at how the French care home system works, and the financial situation for people who have never worked in France.

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