New French tax could lead to higher holiday prices
Foreign owners of French holiday homes are to be slapped with a 20% tax, which could lead to a rise in the cost of self-catering holidays in France.
The tax, to be introduced by President Nicolas Sarkozy next January, will be levied on the estimated annual rent a property could generate, whether or not it is actually rented and regardless of the actual income.
Some of the 360,000 non-resident owners of holiday homes in France, including 200,000 Britons, are expected to sell their properties as a result of the new tax, according to reports in the Telegraph.
This could lead to a shortage of holiday accommodation and an increase in prices of cottages, gites, villas, holiday flats and ski apartments, although there are suggestions it could be challenged in the European courts on the grounds that it discriminates against foreign owners of holiday homes.
By Linsey McNeill
Have your say Cancel reply
Subscribe/Login to Travel Mole Newsletter
Travel Mole Newsletter is a subscriber only travel trade news publication. If you are receiving this message, simply enter your email address to sign in or register if you are not. In order to display the B2B travel content that meets your business needs, we need to know who are and what are your business needs. ITR is free to our subscribers.

































Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent
Strike action set to cause travel chaos at Brussels airports
All eyes on Qatar as Qatar Airways leads a season of global events