Tax on Non-EU Residents with maison secondaire in France

[Gyn_Paul]

We have some Jersey friends (that is resident in Jersey) who

have - for years - had a holiday home in France. They keep it

exclusively for family holdays and never let it out. 

They have been told by a 'friend' that as Jersey isn't in the EU they

will be liable for a notional income tax on the French house (including

years of back tax).

How can this be if they have never derived any income from it in the first place?

Has anyone else heard of this?

If it is indeed the case, can someone point me in the right direction to 'chapter-and-verse' for confirmation please?

p.

[BJSLIV]

There is certainly provision for in the French tax code to impute an income of three times the notional rental value of any property owned by a resident of a country with which France does not have a double taxation treaty.

http://www.globalpropertyguide.com/country.php?id=68&cid=eu&cat=4

As the Channel islands do not normally get involved with such treaties, to protect their mainstream business(!) I suppose this liability could apply to your friends.

 

[Pickles]

The chapter and verse is contained in this document in French, the non-residents part of which is sent out to all non-residents who have been registered with the Fisc. IIRC, the provision for an assumption of notional income on property owned by non-residents domiciled in countries with which France has no double taxation treaty is of long standing

http://doc.impots.gouv.fr/aida/brochures_ir2007/

Click on "non residents" in the index.

Pickles