Housing rental values to be updated in 2028

A proposed revision of housing rental values, set to begin gradually in 2028, has been introduced by Philippe Juvin, the budget rapporteur, and aims to update property tax bases that have remained largely unchanged since the 1970s. The amendment suggests revising rental values with each real estate sale or inheritance, as outlined in the rationale presented by the general rapporteur of the finance committee in the National Assembly. This reform, which has been repeatedly postponed, could lead to significant changes in property tax levels.

Previous discussions on tax reform

The proposal is not new, as similar discussions were raised by Laurent Saint-Martin, a former general budget rapporteur, in 2021, shortly before Emmanuel Macron's re-election. Saint-Martin noted that a comprehensive revision of local land taxation was inevitable, though he stated the subject was not a "priority" at the time.

Concerns about delayed reform

The same concern was echoed by François Ecalle, former member of the High Council of Public Finance and president of the Fipéco (Public Finance and Economy) association, who warned that delaying the revision makes it increasingly difficult and causes cadastral values to diverge further from market reality. Ecalle recommended a gradual approach, suggesting that tax authorities should recalculate values progressively with each real estate transaction finalized by the notary.

Amendment approved by finance committee

Philippe Juvin's amendment, which proposes an update of cadastral rental values with each real estate sale or inheritance, was adopted by the finance committee in the National Assembly and is now set to be submitted to deputies for a vote. The government has not yet commented on this measure.