British owners of second homes in coveted areas of France could see the Gallic equivalent of their council tax rise by 20 per cent under measures due to be presented next week, report The Telegraph.
However, the new surcharge sparked an embarrassing government row as some ministers argued it broke President François Hollande's promise to call a halt to any new tax hikes.
The move, part of a supplementary budget for 2014, would affect owners of second homes French and foreign – in around 30 areas around France where housing is in short supply, known as "zones tendues".
These include the city of Paris and surrounding area, the Atlantic and Mediterranean coasts as well and towns in the south-west and the Alps where demand for housing is very high.
"Obviously these are areas where Brits will ordinarily have their second home. The result will be a 20 per cent increase for Brits with holiday homes in these areas and this could be applied from this year," said Graeme Perry, a London-based French property expert with Sykes Anderson Perry.
Michel Sapin, the finance minister, on Tuesday confirmed French press reports that the surcharge was in the pipeline. The aim, he said was to "unblock housing" in areas where "demand far outweighs supply".
According to Les Echos, the financial daily, it could also bring in €150 million to local councils, who decide whether or not to apply the surcharge.
Broadly similar to the Council Tax, the "taxe habitation" is a charge applied to the occupier of a property – whether the owner or a tenant – based on a percentage of its rental value.
There will be certain exceptions for people who need the second home for professional reasons or those who own a property but are living in a retirement home.