Do you own property in France? Now’s the time to sell.
As with UK property, when you sell a property in France for more than you originally bought it, a Capital Gains (CTG) Tax is due.
However, a recent overhaul of French property tax law (Jan 2015) has introduced very favourable changes for sellers. This makes now a very good time to sell property in France!
French Capital Gains Tax – how it is calculated
Capital Gains Tax in France on property is the tax payable on any net profit you may have incurred on the sale of a property, once expenses, relevant exemptions and allowances have been deducted. Before January 2015 the rate could go up to 70 %, but today the rate is down to 19% for everyone.
However, there is no tax to be paid if any property is sold for 15,000 Euros or less (30,000 Euros for joint ownership), whatever the gain. There is also no tax to be paid on property sold that was your main residence.
Social charges in France
In additional to Capital Gains Tax (CGT), before January, a fee had to be paid for Social Charges on any capital gain. The rate for Social Charges was 15.5%. However, since January, French residents and not French residents are entirely exempt to pay these Social Charges.
French laws were require that non-resident sellers used to be obliged to appoint a “représentant fiscal” on the sale of property in France. The role of the fiscal representative is simply to verify that the correct amount of tax is being paid on the transaction.
There were no fixed tariffs for this ‘service’ and very little transparency about those who impose them. The charges were sometimes quite eye-watering. Seller were expected to pay a minimum of 1 % of the selling price of the property, although most of them were paying substantially more. However since 2015, this Fiscal Representation has become free of charge for French residents and European residents.
2015 is the good time to sell property in France, so Take the first step today and a Harrison Brook Adviser will be in touch shortly to understand your selling requirements in greater detail.
Now is the good time. Instability in the Eurozone (Greek crisis, Devaluing Currency, Quantitative easing) means it is a good time to sell property in France and a savvy option for investors to future proof their finances.
A buoyant housing market and stronger pound, combined with stagnant prices and cheap mortgages in the eurozone, is fuelling a resurgence in Britons and non-Europeans buying overseas.
As the Eurozone continues to struggle, the Euro has significantly devalued against nearly all major world currencies. Volatility in politics always creates selling opportunities in the markets. The selling opportunity is a good time to sell property in France. As can be seen below, the Euro has reached a 7 year low against the British Pound.
Is now a good time to sell property in France? For those outside the Euro, yes! Harrison Brook have been inundated with enquiries from UK, Swedish, Russian and US national clients looking to capitalise on the troubled Eurozone.
For further advice, speak to an adviser today.
Putting your property on the Market – Where do you start?
Selling property in France needs planning. Through our existing client base in the South of France, Harrison Brook have working relationships with nearly all of France’s leading real estate and boutique agencies.
Our experience and client feedback has allowed us to select partners who provide the most consistent and cost effective results for our clients and build a network of partners who we can trust to hold our clients best interests at heart.
As such, we can ensure you begin your journey by speaking with the real estate company most suited to your specific selling requirements. Furthermore, with preferable terms of business with all of our partners, we can ensure you achieve the very price on your property.
Take the first step in your property selling today.
Also if you are planning to stay in France or if you still owning property here, what impact does this have on your taxes in France? This is a key area we help our clients navigate to ensure their affairs are arranged in the most tax-efficient manner possible.
A key area often overlooked when selling your property is the competitiveness of your exchange deal. The extortionate charges of high street banks can easily be avoided though.
Staff in banks are also unlikely to have the expertise or incentive to help you attain the best possible rates and give you advice upon the best timing. Political and economic events regularly cause exchange rates to fluctuate. While 1-2% may sound small, €10k can quickly evaporate from your transaction value without even knowing.
Harrison Brook specialises in such currency matters, so speak with an advisor today.
In conclusion, it is a good time to sell property in France.
Click Get Started for a free analysis of your selling needs from Harrison Brook Advisor located in France.