France's highest administrative court has rejected a challenge to a law hiking the tax on property sale profits in French Polynesia.
The law, which is part of a financial reform, was passed in December and taxes gains from property sold within five years of purchase at 50 percent, up from 20 percent.
Papeete, French Polynesia Photo: 123rf
It was adopted to limit property speculation and encourage longer ownership as house prices kept rising quickly.
The challenge lodged by a Papeete lawyer said no study had been done last year to ascertain there was such speculation.
It said the tax increase was disproportionate and amounted to confiscation.
However, the court in Paris dismissed all aspects of the complaint.
It also rejected a claim that the law should have been submitted to an advisory body, adding that it is a fiscal measure adopted within the competence of the government.