Expert Insight, Breaking News, and Insider Stories on Real Estate in Paris
Stamp duty on property sales in Paris will not increase as of March 1st 2014
Good news for real estate buyers in Paris: the City of Paris has decided not to increase its share of stamp duty on property sales as of March 1st 2014. That portion of stamp duty will remain at 3.8% of the purchase price instead of rising to 4.5%.
We reported on the potential increase in December. The French government authorized départements (counties – Paris counts as one) to increase their share of stamp duty by up to 0.7% between March 1st 2014 and February 29th 2016. The increase is intended to finance benefits payments, for which the counties are responsible. Mayor of Paris Bertrand Delanoë criticized the government’s move at the time.
The total stamp duty payable in Paris on the purchase price remains 5.09%, since it also includes a municipal tax of 1.2% and a national tax of 0.09%. In those counties that decide on the increase, total stamp duty will rise to 5.8% as of March 1st.
So, buyers in Paris no longer face a tax hike that could have added € 7,100 to the purchase of an apartment priced at € 1 million.
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