Wednesday, 26 June 2013

Wednesday, 26 June 2013

U-turn on French Capital Gains Tax

The French Government has finally reduced the length of time before your house in exempt from capital gains tax.

The French government has announced a change in the capital gains tax system on second home sales in a bid to boost the French property market.

The taper relief system is to be changed so that from 2014 the required time of ownerships before a property is completely exempt from capital gains tax will be 22 years, down from the 30 year system which was ratified in September 2012.

This is a clear U-turn by the government, reverting to a system which was planned when former President Sarkozy was in power. 

The changes in taxation were a prime cause of the reason for French home sales to drop at the start of 2013. Last year's property tax changes put off many foreign buyers off buying French property and now with Hollande's changes we may hopefully see some of these buyers return to the market.
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