Owning aproperty whilst living in GB

[Crash_and_bump]

Firstly I'm new to this site, so the questions I ask may have simple answers (I hope so).

I'm looking at buying a property in France (Brittany) as a holiday home or to rent, whilst living and working in England.

Having bought property in England, what are the major pit fails I should be looking for when buying in France.

What outlay is there on a monthly basis, do a pay council Tax, if the property is unoccupied.

If I am living in England and the property is in France and rented out, I take it that I will pay French taxes rather than English, more paper work?

Sorry I have so many questions I feel that I could fill the web site.

Many thanks for your patence.

[Dick Smith]

I can't answer all of your questions - but I imagine you will have pages of them in 24 hours!

In France you will pay 2 local taxes, the taxe d'habitation, and the taxe fonciere, but these vary very widely and will depend on where you choose to buy.

If you rent out you will pay French taxes, and these could be quite heavy, but others will know more...

Not sure what you have in mind about pitfalls - might be better to frame a few questions, much easier to deal with.

[andyh4]

Potential pitfalls:

the French property market might have peaked and the value of your investment might fall.  Just like the pudits have been saying in the UK for around 3-4 years, and it hasn't happened there yet either.  Which is not to say it cannot happen and maybe starting next week..

Different cultures between france and England come as an unacceptable shock.

Local cheap flight airline decides to re-route to another airport 200km away making cheap weekends a problem.

You decide to go ahead with your project and (like, sad to say a number of Brits and others) leave your brains back home when making decisions, leading to problems later.  (just watch some of the travel programs now cominf out about how it all went wrong)

You don't understand french, which makes dealing with French officialdom or local tradespeople difficult, and leaves you open to being ripped off by those who speak English and will be eager to help you..

 

The list could go on and on, but if you treat your project sensibly and with the same care as you would if it were in Cornwall, there should be no insurmoutable problems.

 

 

[Jeff]

As Andyh4 says, treat the transaction as if you were buying here and ask the same questions. I bought in Normandy 4 years ago, and save for a minor hiccup with a neighbour had no problems. As for monthly outgoings, they are low compared with S. Wales. Both my taxes only amount to 170 euros a year. Water about 90 euros. Speak to your Estate agent for advice on taxes or even go in and ask the local Maire. It is always a good idea to get to know him/her.

[Pickles]

The same pitfalls occur in France as in the UK. If the property is rented out then the tenant pays taxe d'habitation but you pay the taxe fonciere. There are specific rules that govern residential lettings, eg effectively you cannot evict a tenant during the winter months, even if they are not paying. Unfurnished lettings are 3 years duration - the tenant can give notice whenever they wish, but for the landlord to terminate the lease early would be difficult. If you are UK resident then you pay income tax on the rental income (less certain costs) in both France and the UK but get relief for the French tax paid against your UK tax. As a non-French resident you don't pay social charges but also don't get the advantage of the graduated tax system in France - essentially you will be charged 25% of your taxable income. If it is done on a small scale, (income less than about 15K euros), then the French returns are VERY easy: above that level and it is slightly more complex but not rocket science.

Pickles

[dfgibbs]

Hi, I hope someone can provide some advice. My wife and I are considering purchasing a 'town house' in a medium sized town (40,000 inhabitants) in the South of France. Our plan was to rent it, long term, unfurnished, until we are in a position to live there, perhaps 10 or 12 years. We found our house, had it surveyed and agreed a price etc. All was going fine until we met with our English based, French qualified solicitor. He advised us that it can be very difficult to evict tenants, even if they stop paying the rent.

I am sure this is good advice but I wonder how common a problem this is? I realise people can probably only give anecdotal evidence, but what experiences do people have?

Many thanks, Dave.

[Blanche Neige]

"All was going fine until we met with our English based, French qualified solicitor. He advised us that it can be very difficult to evict tenants, even if they stop paying the rent. "

This is true and certainly you cannot evict them during the winter months especially if they have children.

I think it is common although people on this forum have had good experiences of long term letting.

 

[Loiseau]

To go back to pitfalls of buying in France, or rather unexpected aspect...

Do make sure you understand the French inheritance laws. 
Unlike in Britain, you cannot leave the property to whom you choose on your death. It's very formally shared out between children, spouse etc according to strict rules.  So if this is likely to be an issue with you (expecially if either party is into a second marriage, or there are stepchildren etc) take advice first. It is vital that the way in which the wording about your "marriage regime" goes into the documents is thought through, for example.

Of course, you may be unencumbered in this respect. But even if you have no spouse, children etc, the French system dictates to whom and in what shares most of your French property must go.

Not a problem necessarily, but something you should be aware of, take legal advice about, and be sure you understand...

Angela