Holiday Home Insurance

Massive Tax Hikes for French Holiday Homes


French holiday homes will see their tax increase as part of the Government’s plan to fill the £8 billion defect in the country’s budget.  This tax increase on rental income and sale profits could cost the home owner thousands of pounds more a year.  These tax proposals form part of a range of taxes totaling 7.2 billion euros this year to try and fill the revenue shortfall left by slowing economic growth.

If the plans go ahead, the rental income tax will rise from 20% to 35.5% and be backdated to the 1st January this year.  This is an increase from £200 to £355 on a rent of £1,000 a month.  The Capital Gains Tax on selling a holiday home will rise from 19% to 34.5%.  This is an increase from £19,000 to £34,500 on a home selling for £100,000 and applies from the end of July 2012.  These charges will apply to anyone who owns property in France and live aboard.   However, money spent on renovations on certain categories of property can be offset against the capital gains tax.

There are already two taxes on holiday homes: ‘taxe fonciere’ which is paid by the home owner and ‘taxe d’habitation’ which is paid by those who live in it.

It is estimated that around 200,000 Britons have holiday homes in France.

The taxes form part of a spending plan against the urgings of Germany to impose more spending cuts. However, the proposal may not take place as the taxes could breach EU laws if they discriminate against other EU nationals.

France isn't the only European country to increase property taxes. In Greece last September, a new property tax was introduced to plug a €2bn (£1.7bn) budget shortfall.

If you own a holiday home in France it is important that you check that your insurer is happy to insure a holiday home which is not in the UK. My Holiday Home Insurance is one of the UK’s leading providers of Holiday Home Insurance and will be happy to provide advice on insuring a holiday home which is outside the UK.

Related Articles

bpoint  Securing your Holiday Home

bpoint  Storm & Flood Update

bpoint  Setting The Standards In Claims Service

bpoint  Home Insurer Goes Into Liquidation

bpoint  London Holiday Rentals Soar During Olympic Games

bpoint  Massive Tax Hikes for French Holiday Homes

bpoint  2012 Olympics: Police to stay in Holiday Homes

bpoint  My Holiday Home Insurance Move Offices to New Location

bpoint  Staycations proving increasingly popular

bpoint  Securing your holiday home

bpoint  Don't have burst pipes in your holiday home

bpoint  Holiday Home Maintenance

European Holiday Home Insurance European Apartment Insurance UK Holiday Home Insurance
UK Holiday Apartment Insurance UK Holiday Lodge Insurance UK Holiday Caravan Insurance

Have a question or like a quote over the phone?

Talk to an expert, call us 6 days a week. Monday to Friday 9am to 5.30pm Saturday 9am to 1pm
0800 988 0890 or  Call Me Back


News & Events

Securing Your Holiday Home

Securing your holiday home is of great importance, both when it is in use or unnocupied. The following checklist will help ensure that your holiday home secure:


Storm & Flood Update

With the recent and continuing storms and floods hitting the UK, we would like to reassure our customers that there are measures in place to help you get back on your feet during these difficult times.

 Read all our news here >>
Holiday Home Insurance Quotes
My Holiday Home insurance Main Links Insurance Services External Links Overseas
About Us
Contact Us
Privacy Policy
UK Holiday Home Insurance
UK Holiday Apartment Insurance
Overseas Holiday Home Insurance
Overseas Holiday Apartment Insurance
UK Holiday Caravan Insurance
UK Holiday Lodge Insurance
Park Home Insurance
Park Homes for Sale
Platinum Seal Warranty Scheme
Static Caravan Insurance
Channel Islands
My Holiday Home Insurance, is a part of Assist Insurance Services Ltd, Royal House, Queenswood, Newport Pagnell Road West, Northampton NN4 7JJ. Assist Insurance Services Ltd is authorised and regulated by the Financial Conduct Authority under register number 435530 for Insurance Mediation and as a Credit Broker.
We do not charge any fees to customers in relation to Credit Broking activities.