DBUD Posted March 12, 2007 Share Posted March 12, 2007 Dear all,I have looked in the forum, but I am still a bit confused....Please could you help? I have been resident and paying tax in France for 2 1/2 years, and my property in France is the only property I have at this moment.I want to sell my house in France and will be buying another property in the UK and also working in the UK, in the near future. Do I have to pay any tax in either of the countries, example if I buy a UK property now, but my main residence is the one in France, what tax do I have to pay, when I sell the House in France??Please help as I am confused. Many thanks Link to comment Share on other sites More sharing options...
Will Posted March 12, 2007 Share Posted March 12, 2007 As long as the house in France is your principal residence, you should not have to pay tax in either country. If the house is less than five years old there may be TVA to pay rather than capital gains, but that is a different matter.Do take professional advice though if this is important to you. Link to comment Share on other sites More sharing options...
DBUD Posted March 12, 2007 Author Share Posted March 12, 2007 Hello Will, Thank you for the quick reply(Infact that was really quick), even if I going to buy a property in the UK by lending on a mortgage? IE, I would like to buy the UK property in the next two weeks, but sell the French property in the next 3 months? Sorry, just a bit confused. many thanks again.DB Link to comment Share on other sites More sharing options...
Will Posted March 12, 2007 Share Posted March 12, 2007 You would need to double check, but there has to be a reasonable time scale to allow houses to be bought/sold, moves to take place etc. Although the French allowance is nothing like the three years before CGT becomes payable (in many instances) on your British house, you certainly have several weeks. I would imagine (though am not certain) that when you put the French house up for sale would have a bearing on that. Just to be certain, you could always rent for a short period. Link to comment Share on other sites More sharing options...
Sunday Driver Posted March 12, 2007 Share Posted March 12, 2007 It sounds like you are buying a property to move back to the UK where you will be working from now on, and would like to dispose of the French property at a later date.If that is correct, the rules for capital gains tax changed in 2004 to allow French citizens and EU nationals residing outside the country to be exempt from CGT on their residence in France. This benefit applies to the initial sale (after 1 January 2004) of an EU national's residence in France, and is reserved for non-resident sellers who paid taxes in France for two consecutive years at some point in the past. (Source: Notaires de France) Link to comment Share on other sites More sharing options...
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