Tax laws Réunion (France)
Réunion, an overseas department and region of France, applies French national tax laws with certain regional adaptations.
Property Taxes:
Taxe Foncière (Property Tax): This tax applies to property owners and is calculated based on the property's cadastral rental value, adjusted by a revaluation coefficient, and multiplied by the local tax rate set by the municipality.
Taxe d'Habitation (Residence Tax): Historically levied on occupants of residential properties, this tax has been progressively reduced and is set to be fully abolished for primary residences by 2025. However, it may still apply to secondary residences.
Local Taxes:
Réunion's municipalities have the authority to impose additional local taxes, such as the Octroi de Mer, a tax on goods entering the island, aimed at protecting and developing the local economy. While it contributes significantly to municipal revenues, its impact on consumer prices has been a subject of debate.
Recent Developments:
In the 2025 French national budget, the government has introduced measures affecting taxation, including increased taxes on large companies and high-income individuals, as well as hikes in air travel taxes. While these changes primarily target metropolitan France, they may have indirect effects on overseas regions like Réunion.
Cost of Living Concerns:
The high cost of living in Réunion, exacerbated by factors like the Octroi de Mer, has led to public discontent and calls for economic reforms to reduce consumer prices.
Conclusion:
While Réunion aligns with France's national taxation framework, regional taxes such as the Octroi de Mer play a significant role in local revenue generation. Ongoing discussions about tax reforms and cost of living adjustments continue to shape the economic landscape of the island.
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