Local property taxes in France’s 10 largest cities
A new report compares and contrasts the rates of local real estate taxes in various cities across France. Paris boasts surprisingly light taxation costs, as opposed to other cities like Montpellier, Bordeaux and Marseille.
Mortgage broker Meilleurtaux.com’s latest barometer analyzes the difference in local taxes for residential real estate in 10 major French cities. While exceptionally low interest rates are currently helping counteract rising prices observed in almost all of France’s main cities, council tax and property tax — grouped as local taxes — represent a significant portion of ongoing real estate costs.
The online broker has calculated the share associated with local taxes over a year in terms of credit installments. The method uses average prices per city according to SeLoger.com’s June 2016 figures. Calculations were based on a 70m2 property financed over 20 years at the average mortgage rate for each city, comparing local tax amounts in force in 2015 for a couple with two children.
“On average in the 10 major cities in France, local tax amounts to a montly burden of 167€,” says Mael Bernier, the spokesperson and director of communications for Meilleurtaux.com. Three cities in particular present markedly high local taxes. Montpellier led the charge with a price of 216€ per month; Bordeaux followed closely with 207€ and Marseille third at 182€.
Conversely, Paris — where prices per square meter are the highest in the country — boasts the lightest local taxation of France top 10 cities, with just 93€ per month for a similar poperty, family and conditions. Lyon, Strasbourg and Lille have rates of about 150€ per month with Nice, Nantes and Toulouse at around 175€.
Comparing the cost of local taxes against monthly loan repayments — to buy the same 70m2 apartment — in each city shows an even greater disparity. The annual tax represents the equivalent of almost three additional months of loan repayments for Montpellier, over two in Marseille, Bordeaux, Toulouse and Nantes, over one month in Strasbourg, Lille, Lyon and Nice and not even half a monthly payment in Paris. Everything is relative of course: monthly mortgage repayments in Paris are over three times the amount for the smae property in Marseille.
Photo credit: Demeester