Sarnia Posted February 21, 2005 Share Posted February 21, 2005 Could someone please advise me on the minimum length of time that we can buy a property and then sell it on. I think it used to be 5 years, certainly here it is one year and a day, but in the US you can "flip" a property on the same day. thanks for your advice. Link to comment Share on other sites More sharing options...
Alexis Posted February 21, 2005 Share Posted February 21, 2005 I think that it all boils down to tax. The amount that you will have to pay.For instance, you buy your house at X€ + fees etc of say 10%.You sell it for a profit after six months. This profit will be CGT and so you make less profit.....and after you have already paid out your 10%. If you buy for 100,000€ + 10% = 10,000€ = cost 110,000€. Sell for 150,000€...profit 40,000€. BUT as far as I know, and I could be wrong, it is the original price of the house and not the one with the taxes added so you are taxed on 50,000€ less the artisan's bills.I did have this somewhere and can't find it.Someone else will be able to help you. I'm sure! Link to comment Share on other sites More sharing options...
Judie Posted February 21, 2005 Share Posted February 21, 2005 The capital gain is worked out by deducting the total price paid, including ALL fees , from the net vendeur selling figure , ie, the figure actually agreed at point of sale. The gain is reduced from the 6th year of ownership onwards by 10% per year until the gain is extinguished after 15 years total ownership. Only artisan bills with full details including the name and french address of the owner are allowable against this gain.Judie Link to comment Share on other sites More sharing options...
Babnik Posted February 21, 2005 Share Posted February 21, 2005 All the above is assuming it's not your principle residence! Link to comment Share on other sites More sharing options...
BJSLIV Posted February 21, 2005 Share Posted February 21, 2005 assuming it's not your principle residence! Which is I believe more strictly policed than it was in the UK before the recent clampdown by the UK Inland Revenue. One of the tests is the completion of French tax returns from the said abode. Link to comment Share on other sites More sharing options...
Judie Posted February 21, 2005 Share Posted February 21, 2005 Babnik, if an annual tax return is not made, then the capital gain will apply to a principal residence.Judie Link to comment Share on other sites More sharing options...
Babnik Posted February 21, 2005 Share Posted February 21, 2005 I suppose if it is your principle residence, then you'd be resident in France and filling in a tax return....or is there a case where you wouldn't be? Link to comment Share on other sites More sharing options...
Judie Posted February 22, 2005 Share Posted February 22, 2005 There are many foreigners living in France who do not realise that they must complete an annual tax return. Unlike the UK where only a proportion of the population fills in a return, in France all residents must do so.Judie Link to comment Share on other sites More sharing options...
TrishT Posted February 22, 2005 Share Posted February 22, 2005 [quote]Could someone please advise me on the minimum length of time that we can buy a property and then sell it on. I think it used to be 5 years, certainly here it is one year and a day, but in the US you ...[/quote]Hi, here is the web address for an up-to-date CGT calculator if you want to sell in less than 5 years from date of purchase.http://rentalsfrance.com/realty/under5.html Link to comment Share on other sites More sharing options...
Hagar Posted February 23, 2005 Share Posted February 23, 2005 [quote]There are many foreigners living in France who do not realise that they must complete an annual tax return. Unlike the UK where only a proportion of the population fills in a return, in France all res...[/quote]Judie, Is that every resident or every household ?hagar Link to comment Share on other sites More sharing options...
Teamedup Posted February 23, 2005 Share Posted February 23, 2005 Depends on the family situation, but it can well be the household. A married couple would do a joint declaration and children can be included on this declaration depending on their circumstances. So my answer is both, can be individuals or households. Link to comment Share on other sites More sharing options...
Hagar Posted February 23, 2005 Share Posted February 23, 2005 TU tks for that -Hope to have the joys of completing a french Tax return next yearrgdsHagar Link to comment Share on other sites More sharing options...
Teamedup Posted February 23, 2005 Share Posted February 23, 2005 Hagar, they won't just automatically send you your first one, at least they don't usually. You will have to get one from your Mairie or the tax office around this time of year and get it in by the date marked on the top of the form, although sometimes they do change that, there is often a delay and one has to watch the press concerning that. Link to comment Share on other sites More sharing options...
Trishaa<P><FONT face="Comic Sans MS"><EM>Trisha<EM><FONT><P><P><IMG height=198 src="http:www.gifmania.co.ukDisneyWinniejpoohlef.gif" width=133><P><P> <P> Posted March 7, 2005 Share Posted March 7, 2005 [quote]Hi, here is the web address for an up-to-date CGT calculator if you want to sell in less than 5 years from date of purchase. http://rentalsfrance.com/realty/under5.html[/quote]Do you know of a website which calculates from 5 to 15 years? Link to comment Share on other sites More sharing options...
BJSLIV Posted March 7, 2005 Share Posted March 7, 2005 Why not try http://rentalsfrance.com/realty/over5.html Link to comment Share on other sites More sharing options...
Trishaa<P><FONT face="Comic Sans MS"><EM>Trisha<EM><FONT><P><P><IMG height=198 src="http:www.gifmania.co.ukDisneyWinniejpoohlef.gif" width=133><P><P> <P> Posted March 7, 2005 Share Posted March 7, 2005 Wow, thanks for that. It's all scary stuff to me so I'll let hubby do the sums Link to comment Share on other sites More sharing options...
londontarn Posted March 7, 2005 Share Posted March 7, 2005 So ... an example would be, in Euros:Bought house - 37,500Notaire fee - 2812,50 - their calculationtotal - 40312.5Assuming no work was ever done on it and I sell for 60,000, as an EEC resident, I would have to pay 2990 in tax.Is this right? Link to comment Share on other sites More sharing options...
BJSLIV Posted March 7, 2005 Share Posted March 7, 2005 it all depends how long you owned it for....... Link to comment Share on other sites More sharing options...
ChezShells Posted March 8, 2005 Share Posted March 8, 2005 From what I have been told is that once you pay your tax d'habitation etc you wont be liable for CGT. Link to comment Share on other sites More sharing options...
BJSLIV Posted March 8, 2005 Share Posted March 8, 2005 once you pay your tax d'habitation etc you wont be liable for CGTAfraid not. Once you make an Income Tax return, and it becomes your Principal Residence then you won't be liable to pay CGT on sale profits. As long as its a second home you have to rely on the length of time you have owned the property to help reduce the tax burden. Link to comment Share on other sites More sharing options...
londontarn Posted March 8, 2005 Share Posted March 8, 2005 I was assuming that it is a second home and that it was owned for about a year. Link to comment Share on other sites More sharing options...
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