Bitcoin News Today: French Towns Turn to Tax Hikes—Who Pays the Price?

The 2025 property tax (taxe foncière) in France is set to increase by 1.7%, driven primarily by inflation-linked adjustments to the cadastral rental value (valeur locative cadastrale, or VLC) of properties. This annual update, while modest compared to previous years, masks significant local disparities, with some municipalities imposing additional surcharges that push the total increase well above the national average [1]. The standard increase is based on the previous year’s inflation rate and applies uniformly across all properties, while local councils retain the authority to adjust their rates, leading to variations in the final tax burden [1].

The overall impact on property owners is further compounded by local development initiatives, particularly in smaller towns where municipal authorities are relying on increased taxation to fund infrastructure projects. In Ploërmel, a town in the Morbihan department, for instance, property tax rose by 8% in 2025, with some residents receiving bills exceeding €1,500. This increase was attributed to an 11 million euro investment program, including sanitation system overhauls and the construction of a new school [3]. Such high local rates have sparked public frustration and underscore growing tensions between taxpayers and budget-strapped municipalities.

While the national average increase is relatively low, the long-term trajectory of property tax in France has been upward, with an average of 30% growth over the past decade. For many property owners, especially those in older or less affluent neighborhoods, property tax now ranks among the most significant components of their annual financial obligations. Henry Buzy-Cazaux, a member of the National Housing Council, noted that the 1.7% increase is the minimum expected this year, emphasizing that local authorities are encouraged to exercise fiscal restraint in the run-up to elections. However, this restraint does not always extend to smaller communities where financial pressures are more acute [3].

The administrative process for paying property tax has remained largely unchanged, with the first installments due by October 15 and the extended deadline for online payments set at October 20. Property owners have the option to pay in a single lump sum or through monthly installments starting in January 2026. This flexibility is intended to ease the burden for homeowners who face financial challenges, although the ability to request installment agreements is limited to those who have pre-registered by June 30 [1].

In response to the rising tax burden, some property owners are exploring alternative investments that are less sensitive to local fiscal policies. Cryptocurrencies such as Bitcoin have attracted attention as a potential hedge against inflation and municipal tax increases, particularly in areas where property taxes are growing disproportionately. The decentralized nature of digital assets offers an appealing counterpoint to the increasingly fragmented and opaque system of local taxation [3].

The broader implications of the property tax hikes extend beyond individual financial planning. With local governments increasingly reliant on tax revenue to fund public services and infrastructure, there is growing concern about the long-term sustainability of the current fiscal model. Experts suggest that without systemic reform to property taxation and municipal funding, the disparity between urban and rural areas—and between wealthy and less affluent municipalities—could deepen. This could exacerbate political tensions and further erode public trust in local governance [3].

Source:

[1] 2025 taxe foncière bills arrive: five questions answered (https://www.connexionfrance.com/practical/2025-taxe-foncire-bills-arrive-five-questions-answered/741046)

[2] Rising Property Tax Shakes French Towns (https://www.cointribune.com/en/rising-property-tax-shakes-french-towns/)

[3] Top 5 cities where you can pay rent entirely in Bitcoin (https://cointelegraph.com/news/top-5-cities-where-you-can-pay-rent-entirely-in-bitcoin)