The market for real estate sales is at half mast and this has significant consequences for the revenues of local authorities: transfer duties are in free fall in 100 French departments. Update on the areas where the decline is the sharpest.
The real estate crisis has not spared the departments. According to FNAIM forecasts, the number of real estate transactions in 2023 should drop below the one million mark to reach 950000 sales on the year. Either 15% decline over 1 year.
However, these transactions have long constituted a financial windfall of the first order for the municipalities and the departments, which collect part of the transfer rights expensive title (DMTO), also appeals notary fees.
On the 7.3% fees on the price of the property paid to notaries, 5.8% end up in the pocket of the departments which are the first beneficiaries, reports Capital. Notaries, on the other hand, receive equivalent fees 0.8% of the price of the good.
Last year, transfer duties yielded more than 21 billion euros to local communities. But since then, the tide has turned. This year, swept away by the collapse in the number of real estate sales, the tax revenues of the departments are down sharply.
Asked by our colleagues from Figarothe Michel Klopfer firm, which specializes in local finance, estimates that transfer duties are down by 18% nationally, according to figures as of July 31, 2023. The decline could even reach 20% by the end of the year.
Result? Of the 101 French departments, only that of the Ardennes recorded an increase in transfer taxes.
What are the clearest transfer tax reductions? In some industries, such as the OiseTHE NorthTHE Gardthere GirondeTHE VarTHE YvelinesTHE VaucluseTHE Maine et Loire or Eure-et-Loirthe decrease is greater 20%.
What worry the departments, for whom the transfer rights represent 20% tax revenue. However, the fall (…) was often correctly anticipated by the departments, which are (…) cautious in constructing their budgets, notes Michel Klopfer.
Notary fees: do you have a negotiation margin?