It was mentioned in passing by some newspapers, but for some reasons it didn’t make the headlines. So here it is: you may remember that, in 2012, France decided that even non-residents who were renting out their flat or holiday house in France had to pay French social contributions on their rental revenues (we call it CSG/CRDS). This added 15,5% of taxes for hundreds of thousands of owners who happened not to live in France (and believe me, this can happen to the best of us!). Just like that. And as it was decided end of 2012, of course it was applied retroactively to all rental revenues in 2012. Of course it was.
We happen to own a studio flat in Paris. We decided to rent it out when we moved to London, and as a result, in 2012, our French tax liability almost doubled overnight (from 20% to 35.5%). Obviously I think that it is unfair to levy such a tax because, as a non-resident, I am already paying for National Insurance, Pension and the rest of it in the UK. Not to mention that, in France, we are paying for all the infrastructure through the local taxes. The new tax came on top of everything else. This is, to me, the perfect example of what a populist decision is: as most owners don’t vote in France, they are an easy target. Let’s make them pay more, nobody will complain! Populism at its best. Utterly disgusting.