The city of Paris raises the ceiling on "notary fees"

The city, which has departmental jurisdiction, is the first department to seize the possibility of this increase, presented by the government as compensation for the effort of around 2,2 billion euros requested from local authorities as part of the 2025 budget.

"We are forced to use this fiscal lever under duress to finance the State deficit," argued Paul Simondon, deputy mayor of Paris Anne Hidalgo in charge of finance, whose decision was voted on by the Paris Council.

"But that absolutely does not balance things out in relation to the planned levies on the city," the elected official regretted.

"We need this increase in the DMTO, it is the only way to deal with the unfair and disproportionate effort imposed by the State," commented François Sauvadet, the UDI (centre) president of the association Départements de France, interviewed by AFP. His department of Côte-d'Or will vote for this increase itself, on February 21, and will be followed by many others.

Transfer taxes (DMTO), often misused as "notary fees", constitute the majority of the fees paid for the purchase of real estate.

In Paris, revenue from these rights, which amounted to 1,2 billion euros in 2024, has fallen sharply over the past two years in the face of the crisis in the real estate market, Paul Simondon told AFP.

The ceiling will increase from 4,5% to 5% from April 1, for a period of three years, and will exempt first-time buyers.

The opposition strongly criticized this decision, which according to Rachida Dati's group "will once again increase Parisians' taxes" after the increase in property tax of +62% in 2023, and "will penalize an already slow real estate market."

Pierre-Yves Bournazel (Horizons), co-president of the first opposition group (Union Capitale), denounced the "easier choice" made by the city, rather than "lowering the standard of living of the City Hall by reducing bureaucracy".