Real Estate & Tax News in France from Propertyshowrooms.com

Rising number of homes for sale on the French Riviera

Thu, 2 Feb 2012 00:00:00 GMT

There has been a significant increase in the number of properties being put on the market in the French Riviera in the first month of this year.

EstateNetFrance revealed nearly 16 per cent more homes were for sale in January, compared to December.

This also represents a 12 per cent rise in comparison to the same month in 2010.

According to the organisation, many sellers were waiting until the new tax regulations relating to property in France came into force at the start of January to put their houses up for sale.

In addition, assets that had previously been taken off the market have been listed again, increasing the pool of available real estate.

The company pointed out it is a "buyer's market" in France, even in the luxury sector on the French Riviera, where the average price of a high-end home has fallen below €2 million (£1.7 million) for the first time.

Last month, EstateNetFrance asserted buyers still view property on the French Riviera as "a secure, long-term investment", which is why there was substantial growth in the number of real estate transactions recorded in the area during 2011.

More Brits turn to French property

Thu, 20 Oct 2011 00:00:00 GMT

Research has shown that more Brits bought properties in France during 2010 than in the previous year.

According to the study published by BNP Paribas, the number of purchases of dwellings made by British buyers last year was 23 per cent higher than in 2009.

Meanwhile, investors from the UK accounted for eleven per cent of all foreign property transactions in France, making them the second-largest group to plough their money into the country after the Portuguese.

In terms of the target locations for British buyers, south-west Aquitaine province proved the most popular - including Bordeaux and the Basque Coast - while the Rhones-Alps region and Provence Alps Cote de Azur also attracted attention from UK-based investors, the report revealed.

However, concerns have been raised recently about the introduction of a new capital gains tax regime, which will impact upon second homeowners in France.

Some industry experts have predicted that more properties will be placed on the market over the coming months as owners try to avoid paying additional duty when the tax comes into force in February next year.

Amendment to French CGT 'may benefit second homeowners'

Tue, 18 Oct 2011 00:00:00 GMT

There has been much talk in recent weeks about the effect the changes to the French capital gains tax (CGT) regime will have on the property market.

Some estate agents in the country have predicted a rise in the number of foreign owners selling their assets in the coming months in a bid to beat the introduction of the new tax rates in February next year.

However, the French parliament has now included an amendment to the bill which could benefit owners of properties in France, chief executive of Leggett Immobilier Trevor Leggett explained.

The new addition to the regulations could see the levy waived if the home has been owned for five years or longer and the investor has not had a principal residence in France for at least two years.

He stated: "The amendment is primarily aimed at providing relief to French expats, but could benefit hundreds, if not thousands, of UK owners of French houses who had been reluctant to put their properties on the market."

However, Mr Leggett cautioned that the exact nature of the changes may not yet have been set in stone and advised investors to keep an eye out for new developments.

New tax 'encouraging French property owners to sell'

Wed, 12 Oct 2011 00:00:00 GMT

The new capital gains tax regime due to come into force in France in February 2012 has resulted in more second home owners putting their properties up for sale, it has been claimed.

Fred Schiff, from the international team at Knight Frank, explained that the changes - which will see both domestic and overseas buyers pay capital gains tax for the first 30 years of ownership, as opposed to the first 15 years as things currently stand - are "unwelcome".

He stressed that this is a particularly difficult burden for those who have owned a property in France for between 15 and 30 years, as they will now have to start paying the new tax.

"Consequently, many have become more motivated to sell, which has been reflected in the significant number of price reductions," Mr Schiff stated.

Earlier this month, Estate Net France made a similar claim, noting that the new regulations will make the idea of selling a property in the country more appealing among non-resident owners.

French tax changes 'may benefit property investors'

Tue, 6 Sep 2011 00:00:00 GMT

Property investors who plan to purchase real estate in France and sell it within five years look set to benefit from proposed changes to the country's capital gains tax scheme.

Speaking to PropertyWire, director of French Private Finance John Busby explained that those who sell their asset within the first five years of ownership are set to receive a lower capital gains tax bill than previously.

However, anyone who holds on to their property will be liable for a greater charge, because inflation will now be taken into account, rather than reducing the capital gains bill by ten per cent for every year of ownership after the first five.

Mr Busby told the publication that because inflation can now be offset against the amount of capital gains tax to be paid, investors who sell within the first five years will be the "main beneficiaries" of the new rules.

Last month, Paris was named as one of the top performing global cities in a Knight Frank index examining the second quarter of the year.

According to the organisation, the French capital experienced a year-on-year rise in real estate values of ten per cent during this period.

Plans for second home tax in France scrapped

Wed, 22 Jun 2011 00:00:00 GMT

Proposals to introduce a tax on second homes in France have been dropped, with president Nicolas Sarkozy deciding to remove the levy after the move had been approved by the French parliament last week.

Under the tax scheme, owners would have been forced to pay 20 per cent of the theoretical annual rent that could be gained from the property to the government.

It was estimated that the move would affect around 360,000 residences, including those owned by French nationals who live abroad but have retained a property in their home country.

Joelle Garriaud-Maylam, one of the nine senators who was at the meeting with Sarkozy at the weekend, commented: "The president told us he had been convinced [the law was a bad idea] and has taken a decision [to scrap it]."

The announcement is likely to come as a relief to those with second homes in the country, as non-resident property owners already pay two taxes to the French government.

In the recent Knight Frank Global House Price Index, France was the best-performing European nation, reaching sixth position in the table of 50 countries after its property prices registered annual growth of 8.7 per cent.

New French property tax to have 'minimal' impact

Thu, 16 Jun 2011 00:00:00 GMT

The impact of new French second home tax changes are likely to be "minimal", with investors not expected to be put off purchasing homes in the country.

This is according to Assetz International, which noted that the destination's proximity to the UK and appealing culture means that its status as one of the most popular countries for second home owners will not diminish.

However, the firm did claim that "less wealthy homeowners" will view the tax as an additional burden, adding that many already pay tax for local services, Overseas Property Professional reports.

"The additional tax looks like it will be minimal and will not discourage buyers from purchasing a holiday home in France," Assetz concludes.

Under the plans, second homeowners in France will incur a 20 per cent tax on their additional home. Something which Assetz believes will lead to an increase in the number of investors choosing to purchase leaseback property.

France makes changes to CGT laws

Sat, 16 Oct 2010 00:00:00 GMT

Individuals with property in France may be interested to learn about the recent changes to the country’s capital gains tax (CGT) laws.

The rate of CGT on house sales in France is set to increase by one per cent next year.

It will mean that CGT on property sales will increase from 16 per cent to 17 per cent, in addition, social charges of 12.1 per cent are payable. The total rate of tax will, therefore, rise from 28.1 per cent to 29.1 per cent.

The news is likely to be of interest to those with Provence-Alpes-Cote d'Azur property for sale or individuals hoping to sell their Rhone-Alpes property

There remain exemptions from liability to the tax, notably the sale of your main home, which continues to be tax free.

In addition, CGT liability reduces by ten per cent a year after six years of ownership, with the sale completely free of tax after 15 years.

Inheritance tax ruling 'may help overseas property owners'

Tue, 28 Apr 2009 00:00:00 GMT

Britons who own property overseas could benefit from a change to inheritance tax law, accountants have suggested.

Experts have said a recent European Court of Justice ruling that the UK government cannot restrict relief on the tax to UK investments does not just apply to agricultural properties or areas of woodland in Europe, the Times reports.

Angela Beech of accountancy firm Blick Rothenberg told the paper: "Britons who own, say, a farmhouse in France or a farm cottage in Italy, could benefit hugely."

Such a situation may interest those thinking of buying property in France, as this could help them to build up an investment that can be passed on to the next generation.

Those considering purchasing in areas of France close to the English Channel may have been encouraged by news that ferry company LD Lines is shortly to launch a new high-speed ferry service.

Spokesman for the firm Nick Stevens said the new 112-metre long catamaran will provide a combination of low prices and short journey times that could help the firm to rival budget airlines.

Investors advised about the importance of French inheritance laws

Wed, 24 Sep 2008 00:00:00 GMT

According to tax advisory service Blevins Franks, Britons considering a move to France should ensure they are aware of inheritance laws in the country.

Although the laws are relatively simple for married couples who have either children from that marriage or no children at all, inheritance matters can become much more complicated if a couple is not married or if there are children present from previous marriages, the firm stated.

French inheritance tax can be as much as 60 per cent, while the law also limits who can actually benefit from available assets.

Peter Horn, senior advisor at Blevins Franks, said: "[It] is probably the most important issue for people to be aware of."

Many UK residents are considering a move to France, enticed by cheap prices (less than a third of UK prices), lower taxes and a cost of living which is estimated to be 30 per cent cheaper than in Britain.

The Times recently reported that Nicolas Sarkozy, the French president, introduced a tax on investment revenue that might discourage foreign buyers.

Sarkozy's investment revenue tax increase could hit Britons

Mon, 1 Sep 2008 00:00:00 GMT

Britons who let their holiday homes in France could be affected by Nicolas Sarkozy's recently announced increase in tax on investment revenue. Sarkozy's one per cent tax increase will be applied to property rental income as well as other investment income.

The tax rise in France has been designed to finance a French welfare plan, reports The Times. The tax, which will bring the total tax rate on investment revenue to 30 per cent, will be wide ranging and it is thought that it could affect many Britons who let their holiday home in France during the holiday season.

French officials hope that the tax increase will generate around €1.5bn per year, However, opponents to the scheme feel that it contradicts Sarkozy's efforts to attract back French tax exiles from, amongst others, Britain, Switzerland and Belgium.

The tax rise will finance a back-to-work programme, the Revenue de Solidarité Active, which will ensure that the income of welfare claimants increases once they find employment; at present some people are better off claiming benefits than in a low-paid job.

It is thought that Sarkozy's scheme will cost roughly €8.5bn per year and the French government will generate the remaining €7bn by abolishing some of the existing benefits.

This story was brought to you by holidaylettings.co.uk, the UK's No.1 holiday home website.

France 'offers tax benefits to expats'

Wed, 26 Sep 2007 00:00:00 GMT

People who want to move abroad to enjoy a lower tax liability have been advised to consider entering the French market.

Earlier this year, incoming president Nicolas Sarkozy introduced reforms to the country's tax regime, such as raising the inheritance tax (IHT) threshold.

As a result of the increase, only the richest people who currently live in France are liable to pay the charge upon their death.

By contrast, rising house prices in the UK have taken many people over Britain's IHT threshold of £300,000, meaning that an increasing number of homeowners could be taxed when they die.

This has prompted some to consider relocating to another country where there tax liability will be reduced.

Liz Dolan of the Daily Telegraph highlighted France as a good destination for these people, since the IHT threshold was above many expats' financial reach.

However, she recommended that people consider other tax issues, such as whether they would be liable to pay other taxes that the British government does not charge.

Investors in French property 'to benefit from tax reforms'

Mon, 3 Sep 2007 00:00:00 GMT

New tax reforms in France could have a positive impact on property owners in the country, according to experts.

Approximately 95 per cent of homeowners will now be exempt from paying inheritance tax (IHT) after the government tripled the threshold at which people become liable to pay.

As a result, only the wealthiest people will be affected by the tax, which is based on the value of a person's estate when they die.

Overseas property specialist Siddalls said British investors in France would be among those to benefit from the reforms.

Marjorie Mansfield, financial adviser at Siddalls, told the Times: "IHT in France used to catch Brits out but for many there is no longer anything to worry about."

This comes after Homes Worldwide recently reported that the French property market was experiencing sustained growth thanks to continued demand from foreign investors.

Anthony Fernandes, director of SPC Overseas, was quoted as saying that current market conditions had created a very "ripe" climate for investors.

French property market may be boosted by new IHT laws

Thu, 14 Jun 2007 00:00:00 GMT

Investors purchasing property in the French market may be set to benefit from proposed changes to the country's inheritance tax (IHT) laws put forward by new president Nicholas Sarkozy, it has been claimed.

According to WorldofProperty.co.uk, Mr Sarkozy hinted that any changes that he introduces will look to ensure that most people will not have to pay IHT on their properties, meaning beneficiaries of investors will not be saddled with large bills.

Niclas Dowlatshahi, managing director of Leapfrog Properties Europe, suggested that this could boost the country's property market as investors look to capitalise upon these favourable tax conditions.

"The French property market is notoriously safe and if this change happens it will also offer an excellent tax break," he remarked.

Trisha Mason, managing director of VEF, recently said that under the new president, France's property market would become "livelier" if he decides to lower IHT and remove other administrative burdens.

'Don't ignore tax implications of overseas property investment'

Wed, 2 May 2007 00:00:00 GMT

Following HM Revenue and Customs' announcement that it plans to crackdown on Brits not declaring income earned abroad, a property expert has said that investors must not ignore tax when working out how profitable a property can be.

According to David Austin, managing director of Property for Life, it is vital that buyers are aware of all of domestic and overseas tax implications when buying property in a foreign country.

He told Mortgage Strategy that hoping no-one finds out about income is not only naive but illegal. Instead, investors should investigate how they can minimise the amount of tax owed.

"For instance, many people believe that if you own a property in France, you can avoid paying tax on your rental income simply by having a French bank account," he commented.

"That simply is not the case, and the authorities now have the power to find out about this income and act upon it."

Mr Austin also urges investors to make extensive efforts to research the tax system of the country they are investing in, "with a tax adviser if necessary".

Last month chancellor Gordon Brown revealed that the government is set to scrap tax on property bought through a company, which means the average international property owner could save hundreds of thousands of pounds, according to experts.

Overseas investors 'to benefit from property tax changes'

Wed, 11 Apr 2007 00:00:00 GMT

The idea of buying an overseas residence through a company will become even more popular following a tax u-turn by the government, a property firm has said.

According to Assetz, chancellor Gordon Brown's latest Budget reveals that the government is set to scrap UK tax on property bought through a company.

And because a property bought in this manner is currently classed as 'benefit-in-kind', investors have been subject to annual tax.

However, this charge is being scrapped next year, which means the average international property owner who bought through a company could save hundreds of thousands of pounds.

Martin Sadler, international sales manager, said: "In France, for example, many British people buy property through an SCI [Societe Civile Immobiliere], which enables them to avoid French inheritance laws forcing the property to be sold upon death and divided between offspring."

However, investors should beware that they are still liable for tax on rental income if the property is rented out on the open market.