Implications of changing residency status

[Archie]

After 6 years of living in France full time we are now considering changing our lifestyle and becoming "maison secondaires". Which Governement departments do we need to inform and what are the implications for property tax, insurance and CGT should we decide to sell our current home at some point in the future?

[Pickles]

[quote user="Archie"]After 6 years of living in France full time we are now considering changing our lifestyle and becoming "maison secondaires". Which Governement departments do we need to inform and what are the implications for property tax, insurance and CGT should we decide to sell our current home at some point in the future?[/quote]

(I have edited out the stuff on CGT because as Parsnips has indicated below, it was completely wrong and it would be misleading to leave it in)

TF and TdH are levied in full: when you are non-resident you receive NO reductions in TdH - in fact it may also go up by about 0.8% (IIRC).

Tax: IIRC you need to officially inform the Fisc: there are forms that you can download and fill in..

Insurance: what type of insurance do you mean? Your property insurance policy needs to be changed so that it reflects that you are not normally living in the property.

Regards

Pickles

[parsnips]

[quote user="Archie"]After 6 years of living in France full time we are now considering changing our lifestyle and becoming "maison secondaires". Which Governement departments do we need to inform and what are the implications for property tax, insurance and CGT should we decide to sell our current home at some point in the future?[/quote]

Hi,

       As a non-resident european citizen there is a specific exemption from CGT when selling your french house, provided:-it is the first such sale you have made --you had been resident in France for at least 2 years at any time preceeding the sale--and had the freedom to dispose of the house  since the 1st Jan of the year  preceeding the year of sale(ie. it had not been rented out during that time).  ( Ref; CGI,art.150U,II-2°.)

[Archie]

Thanks for the info just what I am after.

[Archie]

Great info on taxes .  Do you know re TF & TdH if it is enough to notify just the Mayor of our local commune of our intention or are we obliged to notify our local Tresor Public. My gut instinct is that we should notify both. You were also correct it was specifically house insurance I was enquiring about so thank you for answering that specific question. 

[KathyF]

You should certainly inform your local Tresor Public and especially the local Hotel des Impots, since they need to know where to send your bills/notifications in future.  Don't forget the utilities either. Your electricity and water bills will also have to come to your new address.