Real Estate Developers Protest Rising Taxes, Demand Reform to Combat Housing Costs

Faced with the multiplication of taxes in the real estate sector, developers propose a rearrangement of the TTNB, depending on the duration and the area.

In reality, if the State had instituted this tax, it is to fight against speculative movements that are taking place and which have the effect of increasing the price of real estate. However, the payment of this tax weighs down the cash flow of developers, thus increasing the cost price, which is naturally passed on to the selling price to the customer, notes La Vie Eco.

"Real estate is the only sector where the raw material (land) is taxed. No other sector of activity is severely taxed in this way," laments a developer. In addition, developers are also faced with delays in obtaining building permits, or with constraints related to financing. The start-up time of the work is extended, the machine is running and the taxes are accumulating. All these difficulties make the National Federation of Real Estate Developers (FNPI) point out the urgency of rearranging the mode of taxation of this tax.

This federation indeed proposes, among other things, an exemption for 20 years in the new cities, and 5 years instead of 3 years for land plots of less than 5,000 m², the exemption from the TTNB in favor of land located in areas devoid of one of the water and electricity distribution networks.

In addition to this TTNB, a problem of double taxation is noted, at the level of registration fees and land conservation.