France and Spain have both made recent moves that could bring more properties back into the housing market by making it more expensive to keep second homes or hold homes off the market. The measures are designed to act against housing shortages, especially in areas that are major tourism spots.
In France, a new government decree allows local officials in areas that have been declared a ‘zone tendue,’ with a housing shortage, to increase householder’s tax on second homes by up to 60%.
The mayor of popular resort Saint-Tropez on the Riviera has done just that, saying that buy-ups by cash-rich ”outsiders” had cost the town 40% of its permanent inhabitants, who had to leave either because they could not afford jacked-up prices or because there were no places to rent. The town hopes to raise €3 million to alleviate the shortage.
Spain’s new ‘Ley de Vivienda’ is nearing approval. It does not specifically target second homes, but would empower local councils the power to add a surcharge of up to 150% on the property tax for homes that are vacant without ‘good reason.’ The charge would be 50% for properties empty two years and 100% for those empty for three years. At each level, an additional 50% would be levied against owners with more than one property.
Image: Saint-Tropez
