The Finance Committee of the National Assembly adopted on Wednesday October 16 an amendment aimed at combating real estate speculation, as part of the examination of the 2025 finance bill.
Capital Video: Real estate: capital gains on sales of main residences soon to be taxed?
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Fight against real estate speculation. This is the objective of the deputies of the finance committee who voted on Wednesday October 16 for an amendment along these lines as part of the examination of the Finance Bill (PLF) 2025. Submitted by the socialist deputies of the Pyrenees -Atlantiques Peio Dufau and Inaki Echaniz, the text aims to fight against the mechanisms of “speculative somersaults” consisting of buying then reselling, within a short period of time, real estate. “First victory against speculation in the Finance Committee during this first day of examination of the PLF”, rejoiced Inaki Enchaniz on Wednesday October 16 on the social network X.
In detail, this amendment attacks “primary residence fraud”. As a reminder, owners who resell their main residence, quickly or not, after the purchase are not subject to real estate capital gains tax. Only capital gains made on resales of second homes are currently affected by this famous tax.
A mechanism that drives up real estate prices
So in an attempt to avoid tax, some real estate speculators do not hesitate to buy a property in an area where prices are likely to rise quickly with the aim of reselling it within a short period of time, by declaring the accommodation as as main residence. In this way, these unscrupulous owners avoid paying property capital gains tax. This mechanism is particularly developed in tourist areas where rental tension (with few properties available but strong demand) has led to a significant increase in property prices over the past twenty years.
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To try to stem this scourge, the deputies of the Finance Committee voted for an amendment proposing to condition the exemption from the tax on the capital gains on the sale of the main residence to a holding period of at least five years. In other words, if this measure is definitively adopted after the examination of the PLF 2025 in parliament, owners who buy and resell a property within a short period of time, less than five years, will have to pay the tax on the excess. real estate value, even if they declare the property as their main residence. “This first amendment validated by the Finance Committee will help curb real estate speculation», welcomed MP Peio Dufau on the social network X this Thursday, October 17.
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