Hugues de Tournemire / Photo credit: Magali Cohen / Hans Lucas / Hans Lucas via AFP 10:50 am, August 20, 2023After households, real estate agents, brokers and developers, it is now cities and departments that are directly affected by the real estate crisis. At issue: the decrease in transfer taxes, also known as notary fees, which has consequences on budgets.
The list of big losers in the housing crisis continues to grow. First there are households, then real estate agents, brokers or developers. But not only. Transfer taxes, better known as notary fees, which are used in particular to finance cities and departments, are collapsing. It is the municipalities and departments that are paying the price this time.
"For a department or for a municipality, these are two revenues that disappear from the budget that was anticipated," explains Loïc Cantin, president of the National Federation of Real Estate (FNAIM). "It can be up to 10 to 15% of a department's total revenue. So it's considerable."
€346 million less for Paris
And the market doesn't look like it's about to recover. FNAIM anticipates a 15% decline in sales in 2023 and at best stability in the sector in 2024. And this should result in tax adjustments. "These departments or municipalities have lost the benefit of the housing tax. As president of a federation, I am worried because I think what is left as a tax? The property tax that weighs on households who own a property and other possible taxes to compensate for the loss and loss of revenue induced by this market decline, "says Loïc Cantin.
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For the city of Paris alone, the real estate crisis represents 500 million euros less in the coffers, including 346 million for notary fees alone.