johnycarper Posted September 15, 2011 Share Posted September 15, 2011 We have a friend who is selling up and going back to uk,I am sure its on this site somewhere but can someone tell me the tax they will have to pay when they sell.I thought i read somewhere that after 5 years you do not pay any gains tax in France.Thanks for your help,John Link to comment Share on other sites More sharing options...
Sunday Driver Posted September 15, 2011 Share Posted September 15, 2011 If your friend occupies the property as his principal residence, then he will have no capital gains tax liability upon sale. Link to comment Share on other sites More sharing options...
johnycarper Posted September 15, 2011 Author Share Posted September 15, 2011 Thanks for that it is waht i believed but as always they have a friend who has a friend and then all the usual doom and gloom comes out.I will tell them the good news.John Link to comment Share on other sites More sharing options...
P-D de Rouffignac Posted September 15, 2011 Share Posted September 15, 2011 Before you or your friends get too excited, note that 'occupying your (French) property as your main and principal residence' is a matter that has to be provied to the satisfaction of the French tax authorities, usually through a history of completing French tax returns during the period of residence. 'Second homes' are subject to capital gains tax, with some abatements (reductions) after five years of ownership. Note that these rules are applicable only until 01 February 2012 when the rules change and the reliefs are considerably less generous. Note also that in areas where there are a majority of second homes (where I live and am also selling, 80% of the housing stock constitutes second homes!) we are anticipating a rush of sellers trying to beat the February deadline and a surplus of properties for sale. It's never a good moment.....P-D de R. Link to comment Share on other sites More sharing options...
johnycarper Posted September 15, 2011 Author Share Posted September 15, 2011 no its there only home and they have paid tax in france for just over 5 years so that should hopefully not be a problem.John Link to comment Share on other sites More sharing options...
amos Posted September 15, 2011 Share Posted September 15, 2011 Hello PD, I wonder if you would be kind enough to refer me to some info on how the new capital gains arrangements will affect sales, I know (I think) that inflation will be considered but does the 6-15 year sliding scale still apply on second homes? Link to comment Share on other sites More sharing options...
P-D de Rouffignac Posted September 16, 2011 Share Posted September 16, 2011 Hi! I have described briefly the latest version (from 01 February 2012) on the other forum and in my blog - P-D de R. Link to comment Share on other sites More sharing options...
amos Posted September 16, 2011 Share Posted September 16, 2011 Thanks, your blog is very informative as are all your contributions on this forum. Link to comment Share on other sites More sharing options...
AnOther Posted September 16, 2011 Share Posted September 16, 2011 Not forgetting of course that a CGT liability can only arise when a gain has actually been made - not necessarily a given in all cases [;-)] Link to comment Share on other sites More sharing options...
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