Sunday, 27 February 2011

France - a low rate tax regime

Some people assume that France is a country of high taxation. It can be, be it can also be one of low taxation if you are smart.

Looking at Capital Gains Tax for example on property - if the property has been owned by you for fifteen years then no capital gains tax is payable on sale, even though it is not, and may never have been, your principal home. This is a massive advantage in comparison to UK rules.

Even if you have only owned a property for between 6 and 15 years an allowance of 10% per year of the gain is granted. Thus, as an example, if you sell a property after having owned it for a full 10 years, you will be granted an allowance of 50% against your liability to capital gains tax. Unfortunately, no exemption is available for a sale in under 6 years. In addition, no capital gains tax is payable on a property owned by a non-resident of France, provided you can demonstrate / prove that you have previously been fiscally resident in France for a continuous period of at least 2 tax years.

Ex-Pats often consider that the French get preferential treatment in some areas, but non-residents are not subject to the 12.3% social charges element of capital gains tax, that French residents have to pay under any circumstances. So there is some good news – and France can be a low rate tax regime ! Peter Elias (Agent Commercial)

Thursday, 24 February 2011

Financial matters

We have been living in France for ten years now, advising clients as they consider a new life on this side of the Channel. We work with highly qualified IFAs who have offices in France – so their help is never far away, wherever you’re setting up ‘chez nous’.
We see some clients make mistakes in their financial plans, purely by not seeking professional advice before they move. Even then it is not too late, as some adjustments can often be made. Also, for ex-Pats returning to the UK, there are often planning tools that can ensure a better financial outlook for their return to Britain.
Lump-sum investments and Pension plans are worthy of special investigation, and we can assist with QNUPS, QROPS - If you are retiring in France, your pension arrangements are of utmost importance, don’t risk not making the most of the hard work that you put in during your working life.
Getting in touch to discuss how our preferred advisers can help could make a massive difference to your finances. Check-us out today !
Peter Elias (Agent Commercial)

Wednesday, 23 February 2011

Bargain basement price - 75,995 Euros

This stone built 2 bed house is situated in a quiet and secluded hamlet within the south Deux-Sevres countryside and is a couple of minutes drive from the picturesque village of Chenay.
Ready to move into and with easily managed gardens to the front a rear. A great buy.
Peter Elias (Agent Commercial)

Sunday, 20 February 2011

House with 2 gites and beautiful lake

It is not often that you can truly describe a property as outstanding, but here is one....
In a location that most can only dream about is this beautifully renovated farmhouse and cottages overlooking a valley and it's own small lake. This stunning house sits behind a stone wall affording privacy to the houses and garden. Open the remote controlled gate and you will see why it’s location alone sells this property. The quality of the renovation of the 3 houses and the views from the gardens will further delight you.
Set in probably the most attractive village of the Pays Melloise this property is superb value at 416,000 Euros. Link
Peter Elias (Agent Commercial)

Tuesday, 8 February 2011

The dreaded DPE (energy) reports encore !

Anyone that is interested in French property will know that these reports have been in force for some years now, and that Notaires usually advise buyers not to take any notice of them.

However, with effect from 1st January 2011, the report has formed part of the property advertising, although many reports are still outstanding, as there is a significant backlog with the firms carrying out the diagnostics.

However, there is a very important aspect of the DPE reports, that has not received much publicity, and that relates to the 0% loan facility (mainly for French buyers) - where a proportion of their mortgage can be claimed at 0%, see

This website shows the changes planned for 2011 & 2012. With effect from the latter date, the DPE report is going to significantly influence the amount that a buyer can borrow, with properties in ratings A-D eligible for double the zero % loan, and this will definitely make these properties more marketable.

« Les acquéreurs des logements étiquetés A, B, C et D bénéficieront d’un montant de prêt doublé par rapport à ceux des logements évalués E, F ou G ».

So those vendors with houses rated E, F & G might be advised to try to sell sooner rather than later as more press coverage is sure to emerge, and will inevitably show these houses in a poor light.

Peter Elias (Agent Commercial)