Paris pushes for second-home tax rise to combat population decline

Authorities welcome a tourism boost since Netflix’s Emily in Paris, but don’t want more holiday home buyers
FRANCE-PARIS
The population of Paris is at its lowest in 20 years, figures show
AFP via Getty Images
Miriam Burrell14 February 2023

Paris authorities have proposed to hike tax on second-home owners in a bid to introduce more affordable housing as the French capital’s population declines.

The city’s residents have dropped by more than 123,000 in the last 10 years, according to official figures.

Paris is losing about 12,400 people a year and the population – now at about 2.1 million – is at its lowest for 20 years, French statistics agency Insee says.

While the Covid pandemic and lockdowns are seen as factors for the population drain, the increasing cost of housing plays a big part.

With limited space to build new homes, deputy mayor Emmanuel Grégoire told the Guardian that one measure being considered is increasing taxes on holiday homes.

Mr Grégoire also mentioned strict controls on holiday rentals, and forcing owners of large offices to set aside space for controlled rent public housing.

He said television shows like Netflix hit Emily in Paris are a boost for tourism in the capital, but he doesn’t want people to buy a holiday home there.

He said he wanted visitors in the city of love to stay in hotels, not apartments.

“Paris welcomes tourists but we prefer that when visitors come here they stay in hotels not apartments. We would like the government to introduce stricter rules,” Mr Grégoire told the Guardian.

“We have to discourage people who say, ‘I have watched Emily in Paris I’ll buy a pied-à-terre there’, with a secondary residence surtax of 60 percent.

Emily in Paris is great for stimulating tourism in Paris but we want people living here as permanent residents. If they want to visit they can stay with friends or in hotels.”

Second-home owners are currently required to pay a local council tax and Mr Grégoire says city hall wants the government to impose a further 60 percent increase on another tax paid by property owners.

In 2017 measures were placed on Airbnb owners across European capital cities amid fears that domestic residents were being priced out.

Hosts in central Paris can now only rent out their homes for up to 120 nights a year, a cap introduced following the successful implementation of similar measures in London and Amsterdam.

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