Q I am thinking of buying a pied-à-terre in Paris, as prices look set to keep rising, but should I be worried about further hikes in second-home taxes?
C Norman, by email
A The capriciousness of French property-tax rules is a source of frustration for many British buyers. The capital’s left-wing council recently voted in favour of raising the council-tax surcharge levied on second homes in the city from 60% above the normal rate to 250%, in a drive to free up properties for Parisians. This move still requires parliamentary approval. The suggested increase would be between €1,000 and €2,500 a year (£880-£2,200) for most second-homers, depending on the value of the property.
While this is not a negligible amount, it could easily be mitigated by the dramatic rises the Parisian housing market is witnessing. You can buy a decent one-bedroom flat somewhere central, such as Le Marais, for less than €500,000, and the potential capital appreciation in the medium to long term should outweigh any tax increases.
You could also consider letting your property — although, inevitably, there would be tax implications in both France and the UK.
Tim Swannie, director of the buying agency Home Hunts; 020 8144 5501, home-hunts.com