The Senate adopted, during the first reading of the finance bill for 2023, a centrist amendment to the draft budget. It aims to reform taxation on real estate capital gains. A reform already qualified as “big bang of the real estate market” by Gabriel Attal.
The Senate, dominated by the right-wing opposition, voted on Friday evening for a centrist amendment to the draft budget, aimed at reforming the capital gains regime on real estate sales, described by Minister Gabriel Attal as “a real big bang in the real estate market”. This amendment was adopted during the first reading examination by the senators of the finance bill for 2023. The government will be able to make it disappear by using article 49.3 of the Constitution in the National Assembly.
“A real estate big bang”
“This amendment is a real big bang in the real estate market,” exclaimed the Minister in charge of Public Accounts Gabriel Attal. “It completely changes the logic, with the end of allowances for length of detention, with the very significant drop in the tax rate after only two years of detention, with the abolition of tax on high capital gains”, he developed. “It must be said, it’s a small revolution where we consider that the real estate market rather needs stability,” insisted the minister.
He further stressed that this would be “a very significant loss of revenue for public finances”. The current regime intends to fight against speculation by favoring long detentions. But according to the author of the amendment, Vincent Delahaye, “this regime no longer seems able to respond to both the housing crisis and the construction crisis from which a large part of the population suffers”.