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How is capital gain calculated on the sale of part of my land?


Patmobile

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Having lived in France for a number of years we bought our present home in 2007.  It came with a hectare of garden, some of which we never use or even venture into.  We therefore plan to sell off a plot of about 1600 sqm. as potential building land.

Has anyone any recent experience of the way they calculate the capital gain on this kind of transaction?  On what basis will the original acquisition cost of the land be assessed?

Patrick 

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Just been down this route and completed after 22months. The best route is to pay for a Geometre to measure the plot and apply to the D.D.E. for right of access and for the C.D.U. [permission to build] this can save you delays later on,this cost us about E1800. Even after a buyer has paid a deposit they can ask for anything from the basic 3 months up to 9 months before completing and can put several get-outs if they don'y get what they want,including a mortgage. On completion you are liable for a tax of 10% if you haven't owned the land for 18 years. The Impot supposedly credit you with the original cost of the agricultural area before they calculate the tax due. The Notaire doesn't take this tax,you sign a paper stating that you will declare the sum received on your tax return. Correct in our case but you can always ask your Notaire as he will have to draw the papers up anyway.

Regards. Bonne Chance.
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Thanks for that very detailed reply.  The piece of land already has access to/from the road, as my driveway runs right through the property from one end to the other, and this bit of land will come with part of the far end of my drive and the fancy gateway.

I have already applied through the Mairie to the DDE for a CdU to split off a parcel for furure construction of a house.  I measured it out myself, but will get the geometre to measure and mark it properly if/when I get the CdU.  I've been told I have to wait the usual 2 months and that if then I hear nothing I can take it as granted.

Which parts of the process cost you €1800? The geometre? 

Patrick

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Yes, the Geometre's bill but He had to contact 2 adjacent neighbours as on our cadastre plan the land from the scale plan was actually 2metres X 66 metres out. This extra 132 sq metres obviously made a difference to the amount of land buildable. The neighbours had to sign to agree the new boundary with the Geometre and us in attendance. He had to re-measure and fix Bornes as the new drive access was made by chopping 4 metres off the side of our front plot. We asked him to get everything in the correct format for access,C.D.U. and building line. As I said although this cost us I believe it made the plot more saleable and saved us problems. The main reason for the delay was one buyer changed his mind after SEVEN months,but lost his deposit,the second buyer waited 3 months before getting his mortgage application in and getting it refused. The Geometre,like your Notaire,will give you an estimate of costs.

Regards.
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The land surveyor we use normally charges about 200 euros a borne and just under 200 euros for a CU application, making the average charge in the region of 1000 euros. I would shop around for your geometre to ensure you are getting value for money.

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