Jump to content

Sarkozy's law for main residence owner in France


makeiteasy
 Share

Recommended Posts

Sarkozy's law for main residence owner has been voted on 12th july and would take effect from this date . It should allow to tax residents in France to deduct 20% of their mortgage interest for their main residence ONLY on a maximum of 5 years with a cap at 7500 euros interest for a couple(+500 euros per child) or 3750 euros interest for a single per annum.The amount saved(ie maximum 20% of 7500 € = 1500 euros for a couple)  will be deducted from the tax amount to pay or will be refund by cheque for the non taxable people.

This law should be available for mortgages which have started from the 12th july 2002.Confirmation of amounts and date would follow within the next weeks as they are still not clearly specified by the government.I will keep you up to date.[;-)]

 

Link to comment
Share on other sites

  • 5 weeks later...

As promised, here is the latest update: the "Conseil Constitutionnel" has refused to take into account mortgage for main residence before the 6th may(date of Mr Sarkozy's election)for tax resident in France.Christine Lagarde, Secretary of Economy, has declared today that only for the first year the amount of interest to deduct will be 40% of the mortgage interest instead of 20% but still capped at 3750 € for a single and 7500 € for a couple(+500€ per child)).Then for the next 4 years it will be 20%.[I]

 

Link to comment
Share on other sites

The new law allows you to offset mortgage interest against your income tax. You obtain the relief by way of a reduction in your income tax.  If you are below the threshold for income tax, then you obtain the relief by way of a cheque from the tax office.

It will have no effect on the tax d'habitation and tax fonciere which you will continue to pay as you do now.

 

Link to comment
Share on other sites

Interesting that there is some news about the government debating having a "minimum level of taxation" today... with all the "tax credit" schemes going, it seems that there are an increasing number of people who avoid paying tax altogether, despite good incomes.

Apparantly a similar scheme already exists in the USA.

-Rob-

Link to comment
Share on other sites

However it would be a shame if those of us who have lived here for years, payed our taxes and charges, got married here, whose children were born here, were not allowed to benefit just because we are 'foreign'.  As for all the proposed healthcare charges for the early retirees - ie those who can afford to retire early, whilst keeping their savings, investments etc in the UK, why should they benefit from the steep charges I and all the other french earners have to pay.

Sorry if that sounds harsh but I have just come back from another meeting with the CAF who after 6 months have still not managed to officially translate my refusal of UK child benefit so they can reinstate my french allocations (and I only applied because they said I had to, not by choice)!

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

{template="widgetContainer" group="global" app="core" params="'footer', 'horizontal'"https://www.frenchentree.com/}
×
×
  • Create New...