Housing taxation is a complex mix of taxes and tax incentives, inherited from a long history and incomplete integration into public housing policy. Representing revenue of around €92 billion in 2022, or around 3.5% of gross domestic product (GDP) according to the definition used in this report, it is currently facing unprecedented challenges linked to the cyclical difficulties of the property market and, more structurally, to the energy and ecological transition and the growing inequality of wealth in France. For these reasons, the CPO (Conseil des Prélèvements Obligatoires - French Council of Mandatory Levies) has chosen for the first time to analyse housing taxation by looking at its coherence and effectiveness. At the end of his analysis, it concludes that this sectoral tax system is ill-prepared for today’s challenges and needs to become more coherent by striking a better balance between incentive schemes and a broader logic of neutrality.
