A new study has revealed the extent to which France’s tax foncière increases property values.

In smaller French cities such as Nîmes, Le Havre and Saint-Étienne, the tax has a greater impact. Using the example of a property with an area of ​​70 sq. m. payments were calculated based on a full mortgage at current rates. In Nîmes, the initial tax on this property of €1,674 adds 15.6% to the annual mortgage costs. Other cities with high rankings were Saint-Etienne (15.7%), Le Havre (12.7%), Dijon (11.5%), Le Mans (11.3%) and Grenoble (10.5%). However, this is counteracted by the fact that in all these cities the price per sq. m. m. relatively low (less than 3000 euros).

In big cities it’s the opposite. In Lille, the total cost increased by just 4.7%, followed by Nice (4.5%), Lyon (3.6%) and finally Paris (1.4%), where prices are the highest in France.

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