Starting in 2015, Paris began taxing vacant homes the equivalent of 20% of the fair market value of rent. On January 30 this year, they tripled that amount to 60%. The idea isn’t to punish those fortunate enough to own a second (or twelfth) home. They’re trying to discourage speculation and promote a healthy rental market.
Runaway real estate speculation has been filling global capitals with vacant homes, creating artificial shortages in the world?s most sought after cities. The ?shortage? has made local home owners wealthy overnight, but it comes at the cost of turning lively cities into empty shells. The city of Paris has decided it?s had enough, and implemented a tax in 2015. They didn?t quite get the results they wanted, so they?re now tripling the tax to 60%.
Paris? Empty Home Problem
Paris has been trying to deal with vacant property owners for some time. Despite warnings that the city will have to take action, the number of vacant homes is growing. There?s now 107,000 vacant homes, representing 7.5% of all residential dwellings in the city according to France?s INSEE. Deputy Mayor Ian Brossat told Le Monde that 40,000 of those vacant homes aren?t even connected to the…
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