Sunday, 29 May 2011

Sunday, 29 May 2011

New tax for 2nd homes

A new Tax on second homes is planned for 2nd homes owned by foreigners in France.

From 1st January 2012, non-residents who own a second home in France will be charged an annual tax of 20% of the cadastral value of the property. Clarification is being sought of what comprises the cadastral value, but it is roughly equivalent to the Taxe Habitation.
We are trying to establish whether there are any exemptions, and understand that expatriates overseas for professional reasons will not be affected. One client got in touch this week about the new tax to find out how it would impact upon their purchase. Having explained that a typical Habitation Taxe bill is perhaps 400 Euros, the sum of 20% of that, i.e. 80 €, is hardly going to be a deal-breaker, although it would be better of in your pocket ! It will be interesting to see if anyone challenges the legality of raising a tax solely on foreigners .... so watch this space.
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