New tax on non resident home owners

[pachapapa]

Cant see any particular problem with a saisie-vente.

[Alex H]

[quote user="Patf"]As hinted from the last few posts, the big problem would be collecting the tax. Even if it's made as an add-on to taxH. or taxF., the people who are due to pay it aren't resident in France and can be very elusive if they wish [;-)]

[/quote]

But, if you add it on to the taxH or taxF and don't pay it, the amount just continues to rise with each succesive non-payment. If at the end of it all the non-resident wishes to sell his/her house, who handles the paperwork - a tax collector!

[Jon 1]

I read in one of the Sunday papers that if your second home was being advertised to let that this tax could/would not be imposed.

Surely a simple matter to have your property with an EA at a price that will discourage any interest.

Problem solved?

[pachapapa]

[quote user="Jon 1"]I read in one of the Sunday papers that if your second home was being advertised to let that this tax could/would not be imposed. Surely a simple matter to have your property with an EA at a price that will discourage any interest. Problem solved?[/quote]

How damned sporting of you Old Chap to volunteer a "valeur locative" that will make the taxman gleeful.[:)]

[EuroTrash]

[quote user="Patf"]As hinted from the last few posts, the big problem would be collecting the tax. Even if it's made as an add-on to taxH. or taxF., the people who are due to pay it aren't resident in France and can be very elusive if they wish [;-)]

Filling out a tax form? Impossible to administer.

[/quote]

When you think about it, why do they bother paying taxeH and taxF? If they are going to withhold one they might as well withhold the whole lot.

[Frederick]

 

  Leaseback...... Is anybody doing this and how well do they find it works out  ?

 

Whether this tax will actually come into force, and its effectiveness, is still under is debate. There are questions of legality under European law and speculation over loopholes that would help investors minimise liabilities,’ he added.

Leaseback is one solution. They have risen in popularity in recent years compared to classic second homepurchases in France due to the security they offer, according to Williams.

Under a leaseback they buyer has freehold ownership of a property in France, guaranteed rental income (index linked) derived from the lease of the property to an appointed management company as well as personal usage throughout the year. In addition VAT is refunded, a considerable saving of 19.6% for buyers.

‘France will remain one of, if not the most popular choice for second property abroad with Brits and indeed many other nations. Leasebacks offer a safe, secure and hassle free way of owning a home in France and its exemption from this proposed new tax is further evidence of the programme’s merit,’ said Williams.

[Rabbie]

[quote user="Patf"]As hinted from the last few posts, the big problem would be collecting the tax. Even if it's made as an add-on to taxH. or taxF., the people who are due to pay it aren't resident in France and can be very elusive if they wish [;-)]
Filling out a tax form? Impossible to administer.
[/quote]Surely if they use their second home in France they will be within french jurisdiction so they could be arrested if they are breaking french law.

[MrCanary]

I just read an article online that said the tax would be applied to people who let their homes out for part of a year...

So, like Pierre, I never rent mine out at all, so do I escape this?

[woolybanana]

It is just the opposite.

[mike]

write to your local mayor, make local estate agents aware talk to your neighbours both french and english, make everybody aware that its the french towns,local business's and communes that will suffer most. The foreigners have brought life to communities that were dying, renovation to old buildings and most importantly cash into local economies all over france. Our local mayor has done everything he can to encourage incomers he knows its good business and boy will his town suffer if we leave or more people dont come to buy. And as for estate agents can you imagine how much they need this?

Make a noise, do something positive about this and get as many other people as you can muster to do the same.

[cooperlola]

[quote user="mike"]write to your local mayor, make local estate agents aware talk to your neighbours both french and english, make everybody aware that its the french towns,local business's and communes that will suffer most. The foreigners have brought life to communities that were dying, renovation to old buildings and most importantly cash into local economies all over france. Our local mayor has done everything he can to encourage incomers he knows its good business and boy will his town suffer if we leave or more people dont come to buy. And as for estate agents can you imagine how much they need this? Make a noise, do something positive about this and get as many other people as you can muster to do the same.[/quote]Within this long thread there's a link to a very good article which looks at this from the point of view of the French economy so it has some less emotive arguments (than some) which could prove useful to you:

http://www.lecri.fr/2011/05/10/la-taxation-de-la-residence-secondaire-des-etrangers/23432

Thanks to 5-E

[mike]

talk to your local mayor. They are good people with lots of power and they know what the revenue we provide does for them and local business. Dont let this happen without making a noise.

[mike]

whats just the opposite?

[mike]

write or speak to your local mayor.

[Jon02]

[quote user="mike"]whats just the opposite?[/quote]

If it isn't available for letting all the year round then the tax applies.

[Jon02]

[quote user="mike"]write or speak to your local mayor.[/quote]

I will. But what actual power does he have? And what's the sanction? If you persist in doing this then . . . .?

Personally I'll tell him that I'll pay the tax (no options there) but I will take the tax plus some percentage out of what I spend in the state economy. Not the local economy, why should the locals suffer?

[Théière]

As Coops said but I couldn't pick up from the online translation there is a French side to this story....

It's not enough to pay a whole years habitation and cotisation tax when you only use the services for 12 weeks a year.......

But some French person who would be using all the services would also be paying more tax than an empty house and spending more on overpriced food, electric...can't on water as there isn't any [:)] but look at the shabby chic! they don't spend that much in Brico's either. There will be more crumbling buildings, more speed cameras, less auberges. The french government are in one unholy mess as this prospective action shows, what to tax next????

As I said before I will set up an AE and cut my relatives grass a few times a year and they will do the same so we will be tax resident if they go through with it. Still smacks of illegal under EU rules though.

[idun]

but I will take the tax plus some percentage out of what I spend in the state economy.

 

So how will you do that then. How can you deprive the 'state'?

[audio]

Talking to your local maire as Mike suggests would not do any good in my commune unfortunately. The locals freely admit they don’t like maisons secondaires, it puts the prices up for them, short sighted, perhaps but I would not argue it’s their village; I am a foreigner, just a resident alien, not a citizen of France.

I recently spent quite amount of time at St. Malo and was quite surprised how full the ferries were, at a guess 95% were British registered cars. Of the visible ‘cargo’ they were carrying was not for a fortnight at a hotel but for their own holiday homes. The amount of revenue the Brits are bringing to France must be quite substantial and now this ruling will I would have thought severely reduce it.

Although this proposed tax will not effect me personally, I can see many Brits leaving.

I just hope the UK government will retaliate in a similar way.

No doubt someone will stay to turn off the lights.

[Théière]

It puts the price up for them, is always an interesting line. Unless there is a particular shortage of property it is just the agents that run the prices up. As a citizen of Europe you should not be discriminated against by a member state. The proposed tax annoying, but not enough to make me leave just yet. If the UK retaliate it's just the people that loose being played like chess pieces by governments.

[woolybanana]

This is the second time at least that Mr Sarko Too Small to Count has shown his contempt for EU foreigners - the first time was the health business - whilst barely being French himself. He is not digne de la France ni d'être president de ce pays.

[audio]

Yes wooly but watch your back, I’m sure there are a few old guillotines lurking about, after all someone must like Sarky, oh! sorry they don’t?

[NickP]

Audio wrote: Although this proposed tax will not effect me personally, I can see many Brits leaving.

 

What a load of tosh, who is going to give up a holiday home, especially one that they have spent a considerable amount of money  renovating, just  because of a few Euros a week extra tax. Also Wooly this tax is not just for foreigners, it affects French people as well.

[woolybanana]

[quote user="NickP"]

Audio wrote: Although this proposed tax will not effect me personally, I can see many Brits leaving.

 

What a load of tosh, who is going to give up a holiday home, especially one that they have spent a considerable amount of money  renovating, just  because of a few Euros a week extra tax. Also Wooly this tax is not just for foreigners, it affects French people as well.

[/quote]

Hardly, NickP. Those abroad for a few years won't pay and those long term will arrange to rent.

[Loire]

I would and there will be plenty of people that will think in the same way,

I put enough money into the french ecomeny last year spending £37000 in renovations using local builders and visiting 28 times at a considerable cost,

I have at least another £100,000 of work still to complete and i will never rent or recieve any income from my property, i dont see why i should have to pay a additional tax, I will sell up and take my money else where in europe.

If they get away with this tax it will just be the start in ten years you will be paying through the nose,