Angie Posted September 23, 2015 Share Posted September 23, 2015 There was an article in the Mail on Sunday this week about owning property abroad. Under the section for France it advised that you borrow money in France rather than using UK funds or cash and explained that if you had a French mortgage on your French property then the valuation for annual taxes is reduced - can anyone confirm this? I've never heard of this. Link to comment Share on other sites More sharing options...
NormanH Posted September 23, 2015 Share Posted September 23, 2015 I have had French loans for purchasing property but have never had a reduction of local taxes as a result.But if it is in the Mail it is probably misinformation...There are some reductions and exonerations, on the grounds of income or age.The place to look ishttps://www.service-public.fr/particuliers/vosdroits/F42 Link to comment Share on other sites More sharing options...
andyh4 Posted September 23, 2015 Share Posted September 23, 2015 If you have a French mortgage AND you declare income tax to the French authorities, you may be due for a tax reduction (or even a rebate) on your income tax for the first 5 years of the mortgage.I am not sure if this applies if you have a foreign mortgage on your French property. Link to comment Share on other sites More sharing options...
EuroTrash Posted September 23, 2015 Share Posted September 23, 2015 Income tax reduction yes, but property tax reduction - the only way I can think of where in theory this could happen is, in a situation where the income tax allowance on your mortgage, as andyh4 says, tips your RFR just low enough for you to qualify for a reduction in taxe d'habitation that you wouldn't otherwise have got because you'd have been above the threshold. But again, that would only apply to people who live in France full time and pay their taxes here. Also, bearing in mind that to qualify for reduced taxe d'hab your total net income has to be pretty low (around the 10k mark I think?), and bearing in mind also that French lenders require your monthly net income to be at least x3 the sum of your monthly loan repayments, that person wouldn't have been able to get much of a mortgage in the first place.Sounds a bit like the DM has got the wrong end of the stick again, and certainly if they're giving the impression that somebody who lives and works in the UK can walk into a French bank and walk out again with a mortgage offer just for the asking, they haven't done very much research. Link to comment Share on other sites More sharing options...
Chancer Posted September 23, 2015 Share Posted September 23, 2015 [quote user="EuroTrash"]property tax reduction - the only way I can think of where in theory this could happen is, in a situation where the income tax allowance on your mortgage, as andyh4 says, tips your RFR just low enough for you to qualify for a reduction in taxe d'habitation that you wouldn't otherwise have got because you'd have been above the threshold.[/quote] No mortgage but I have a minimal RFR, doesnt the above reduction only apply to pensioners? If not then maybe I have some money owed to me. Link to comment Share on other sites More sharing options...
NormanH Posted September 23, 2015 Share Posted September 23, 2015 I posted the link to find this out... Link to comment Share on other sites More sharing options...
EuroTrash Posted September 24, 2015 Share Posted September 24, 2015 "maybe I have some money owed to me"If you're entitled to a reduction for low income it's applied automatically before the bill is issued - the figures off of your tax return are used in calculating the taxe d'hab bill for your résidence principale. So unless you know what the bill would have been with no reduction, you don't necessarily realise that you have been given a reduction unless you read the small print on the back. If you see what I mean.But I doubt they would agree to go back and re-assess taxe d'hab for any years when no tax declaration was submitted at the time... As I think you once stated yourself, not declaring when one should, tends ultimately to be to one's own disadvantage ;) Link to comment Share on other sites More sharing options...
Chancer Posted September 24, 2015 Share Posted September 24, 2015 I agreed to submit 3 déclarations last year, one on time (well actually a few months late) and 2 backdated ones, I have my avis d'imposition for last year with a RFR of about €1800 but nothing for previous years, I think that they have just ignored them.So I may get a reduction next year but my question was isn't that only applicable to those over 70? Link to comment Share on other sites More sharing options...
Chancer Posted September 24, 2015 Share Posted September 24, 2015 [quote user="NormanH"]I posted the link to find this out...[/quote]Just looked Norman, I'm not old enough. Link to comment Share on other sites More sharing options...
EuroTrash Posted September 24, 2015 Share Posted September 24, 2015 Even if you're not old enough for the age exemption, on that income you should be eligible for the plafonnement which is income related"Les contribuables qui ne remplissent pas les conditions d'exonération mais dont le revenu de référence de l'année précédente est inférieur à un certain plafond peuvent bénéficier d'un dégrèvement partiel de leur taxe d'habitation."http://services.completefrance.com/forums/completefrance-forums/cs/forums/EditPost.aspx?PostID=3297016&ReturnUrl=%2fforums%2fcompletefrance-forums%2fcs%2fforums%2fShowPost.aspx%3fPageIndex%3d2%26PostID%3d3297016http://droit-finances.commentcamarche.net/contents/965-taxe-d-habitation-degrevement-partiel-et-plafonnement Link to comment Share on other sites More sharing options...
EuroTrash Posted September 24, 2015 Share Posted September 24, 2015 sorry about the formatting b's-up - and now the Edit button has disappeared under the adverts so I can't even try to sort it out.There were supposed to be 2 separate links to copy and paste there. Link to comment Share on other sites More sharing options...
idun Posted September 24, 2015 Share Posted September 24, 2015 Can your 'odd' relationship with the impots office have something to do with this Chancer?I know that impots does affect taxe d'hab for residents. Link to comment Share on other sites More sharing options...
Chancer Posted September 24, 2015 Share Posted September 24, 2015 What do they class as the previous year? I have my avis d'impôt for 2015 with the low RFR I guess that it wont be until 2016 that I will get any reduction of taxe d'hab. Time will tell if they are going to process the previous déclarations if they do then I can ask for a dégrèvement. I have paid it all these years so another few wont matter especially as money is no longer tight. Link to comment Share on other sites More sharing options...
NormanH Posted September 24, 2015 Share Posted September 24, 2015 Won't your letting income now take you over the limit? Link to comment Share on other sites More sharing options...
Chancer Posted September 25, 2015 Share Posted September 25, 2015 It would this year but the abattement takes it well Under. Link to comment Share on other sites More sharing options...
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