mogs Posted August 22, 2007 Share Posted August 22, 2007 When paying taxs in France is it taken into account if you have a mortgage for the interest charges etc. for instance - what I actually mean is do you get a reduction in tax if paying a mortgage? I heard somewhere that you can claim for the last 4 years as this is a fairly recent addition to the system, but is this true?Thanks Link to comment Share on other sites More sharing options...
BJSLIV Posted August 22, 2007 Share Posted August 22, 2007 One of M Sarkozy's pledges was to introduce tax relief for interest payments if he was elected. A law was quickly passed to introduce this, but the part extending it to existing mortgages was ruled to be unconstitutional. So at present allowance will only be given for mortgages started after the election (May 6). Sarkozy has said that the Government will modify the law to allow existing mortgages to benefit. Announcements are expected later this week.Watch this space...... Link to comment Share on other sites More sharing options...
Ian Posted August 24, 2007 Share Posted August 24, 2007 I think Sarko's pledge was just for your principal residence (in France naturally)- not holiday homes or buy-2-let properties or foreign real estate. I'm sure someone will correct me if I'm wrong. Ian Link to comment Share on other sites More sharing options...
mogs Posted August 27, 2007 Author Share Posted August 27, 2007 I visited our local tax office last week to query why the Avis d'Impot (green form) was nearly 3 times more than we had previously been verbally told at the Impot.What a pleasant surprise I had when the very nice tax man told me that there had been a computer error, and the original figure he gave us was the correct one! Phew, a sigh of relief, even the tax man was pleased for us!So, it pays to check your forms carefully! Link to comment Share on other sites More sharing options...
Will Posted August 27, 2007 Share Posted August 27, 2007 There seem to be a lot of errors this year with the Avis d'Impôt forms. Link to comment Share on other sites More sharing options...
Mel Posted August 30, 2007 Share Posted August 30, 2007 The tax relief on interest payments law was finally enacted on July 13 and the revised, revised, revised arrangements are your income tax bill reduced by an amount equal to 40% of the mortgage interest paid in year 1, and 20% for years 2-5. There are now quite a lot of restrictions, like it only applies to principal residences, it only applies to mortgages taken out after 6 mai and the total 5-year amount is limited depending on your family circs. Oh, and you have to be paying French income tax before it can be reduced!BTW, there are apparently 415 other tax reliefs currently available......Mel Link to comment Share on other sites More sharing options...
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