Re-imposition of French Social Security charges on non resident home owners

[Sprogster]

With the French government deciding to re-impose French social security charges on rental income or gains for French homes owned by non residents from 2015, I fear any prospect of a recovery in interest the French second home market has been kicked into the long grass, as non residents are likely to be put off by a 'tax' that is not recognised as such and allowable as a tax credit by their home country.

Apparently, the French government believe they can get around the previous French court ruling against the practice, by allocating the funds raised to a separate account from normal social security contributions!

[lindal1000]

I suppose the question is whether second homes are a good deal anywhere at the moment. The Uk is planning to introduce a higher rate of stamp duty for people buying second homes as well.

Property this way has picked up.. some UK second home owners but mainly French and Belgian and mostly buying them to live in.

On the whole I think second homes are a thing of the past.

[Angie]

Are the French Social Security charges payable only on any profit made on the sale of the house and is there any taper relief after a certain period of ownership? Thank you

[Russethouse]

[quote user="Sprogster"]With the French government deciding to re-impose French social security charges on rental income or gains for French homes owned by non residents from 2015, I fear any prospect of a recovery in interest the French second home market has been kicked into the long grass, as non residents are likely to be put off by a 'tax' that is not recognised as such and allowable as a tax credit by their home country.

Apparently, the French government believe they can get around the previous French court ruling against the practice, by allocating the funds raised to a separate account from normal social security contributions![/quote]

I'm not so sure, for Brits who need a mortgage to buy a house they let, the mortgage is no longer allowable, plus stamp duty on buy to let's has now returned to its previous rate. While interest rates remain low some may still think that it's worth taking a punt on property that maybe they can use for holidays and hoping that future governments are kinder....