New French trust laws are the 'largest development in overseas property for a decade'

France could benefit from a massive influx of foreign property investment after its government decided to implement the country's first ever trust law.

A report on Overseas Property Professional has explained that the new guidelines mean that foreign pension trustees will now be allowed to invest in leaseback property within the country.

Furthermore, wealthy investors can now avoid heavy taxation when using offshore funds for property transactions.

Investors from tax havens such as Jersey, Guernsey, the Isle of Man, the British Virgin Islands and the Cayman Islands will now be exempt from the three per cent penalty that has been applied in past years.

David Anderson, of law and tax firm Sykes Anderson, told OPP that this could represent one of the largest developments in overseas property of the last ten years.

"We're seeing quite a run of high net worth individuals with offshore funds focusing on trophy properties and asset classes that can't be bought in the UK, such as vineyards and ski lodges, as well as prime agricultural land."

A survey conducted by HomeAway and Savills recently claimed that France was set to become an investment hotspot during 2010.

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