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  5. What's new in 2023: Fiscal and legislative impact on real estate in France

What's new in 2023: Fiscal and legislative impact on real estate in France

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What's new in 2023: Fiscal and legislative impact on real estate in France

The year 2023 was marked by major changes in the French tax and legal landscape, significantly shaping the real estate sector, with direct impact on owners, investors and professionals. Let's decipher the key developments that have reshaped the French real estate panorama this year.

Finance Law and Real Estate

The last fiscal year introduced some notable adjustments to real estate taxation. Among the salient changes was a revision of capital gains tax rates for residents and non-residents, affecting real estate transactions.

These adjustments aim to align tax policies with the country's economic and social objectives, while seeking to ensure tax fairness for different categories of investors.

Find out more about the latest developments in real estate capital gains tax

Impact on Investors

Tax changes are having a tangible impact on real estate investment decisions in France. They may have generated a revision of acquisition strategies, prompting some investors to review their portfolios and reassess potential returns.

Taking these changes into account has become essential for investors seeking to maximize their gains while remaining compliant with the new regulations.

Read the analysis of trends and prospects for luxury real estate in France by Alexander Kraft, CEO of Sotheby's International realty france-monaco.

Impact on foreign investors

Real estate in France nevertheless remains an attractive target for international investors, but obtaining financing is often a major challenge.

That's why the real estate agent teams at Côte d'Azur Sotheby's International Realty recommend that their buyers request a financing certificate, helping to smooth and facilitate the purchasing process.

For foreigners looking to invest in France, we advise you to go through the financing attestation stage to secure financing.

Economic Outlook

At the same time, these developments have influenced the economic outlook for the French real estate market. The initial uncertainty linked to legislative changes is gradually fading, paving the way for new opportunities and an adaptation of business practices. Real estate players are now striving to seize these transformations to better serve their customers and adapt to an ever-changing environment.

Some cities remain forms of safe haven, particularly on the Côte d'Azur, including Nice, which is booming economically, and Cannes, the festival city, which lives as much from its event tourism as from its seasonal tourism in fine weather.

Regulations and urban planning

Urban planning and environmental standards have also undergone significant adjustments. New building and renovation regulations aim to promote more sustainable practices and encourage environmentally-friendly real estate projects. These changes are impacting the way real estate projects are designed, developed and assessed, reflecting the growing commitment to greener urbanization.

As a true reflection of the market and buyers' strategies, the DPE score is playing an increasingly important role in buyer searches, as this mandatory requirement for putting a property up for sale has become a powerful selling point.

The year 2023 also saw the introduction of mandatory geohazard advertising.

The year 2023 witnessed significant upheavals in taxation, legislation and economics affecting the real estate sector in France. These changes call for heightened vigilance on the part of real estate players, prompting them to adapt and optimize their strategies to thrive in this new regulatory and economic context.

By being alert to these developments and adapting effectively, real estate professionals can not only successfully navigate this new environment, but also take advantage of emerging opportunities to ensure the prosperity of their businesses.

To find out more and obtain expert advice, contact our real estate agencies and our expert teams.

+33 (0)4 92 92 12 88