New French Tax on Empty Offices Space in Paris

The Council of Paris in France just created a new tax on the 8th of March 2014 applicable to French property owners of empty offices in the Capital.

As of January 2015 the owners of offices in Paris will either have to convert empty space into housing or pay the new tax.

The tax will be 20 percent of the rental value increasing to 30 percent of the rental value in the second year and 40 percent in the third year.

The tax according to the article in Le Figaro does not take into account that the owner is already losing money if the property is left empty. The owner still has to pay charges and property taxes. It assumes the owner wants to lose money by leaving the property empty.

The cost to avoid the tax is to renovate the office space into housing which according to owners may not always be physically possible based on the design of a building that was never built to be housing space.

Read the original article in French here

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