Holiday homes

[Pighunter]

[It certainly sounds like what Hollande wants to collect. He (Hollande) just wants to collect a little tax on the profit.

Blackduff[/quote]

Exactly, but avoiders watch out! the The guillotine is available !




That is my Pension that you are reducing !]

And mine! Sorry but I don't call 35.5% 'a little,' rather a lot![/quote]

[Santiago]

What are the actual rules on CGT in France?

Is there relief if you own the property for a certain number of years? What can you offset the gain against? etc.

One could also argue that capital gain on property is down to the economy that the government provides. If they build better schools and hospitals and create more jobs in the area, the value of your property goes up without you doing anything. So its only fair you pay tax on that.

To the average person, owning more than one property means you are rich, rich enough to pay some of the profit on those properties to the government.

In the same way that if you earn over 100 000€ people assume you should pay a higher rate of tax than if you earn 30 000€.

I know that if your second home is your primary source of income, it seems tough. I've been in that situation too but it's not the same as working is it?

Just presenting the other side of the argument.

[Pighunter]

Agreed, I have no problem with the CGT element, that is really tax on money for nothing (other than investing a substantial sum!)

It is the proposed 35.5% on income that I object to, say 20% fair enough, and as far as [it's not the same as working is it?] maintaining a house and 26 hectares is pretty much a full time job, harder work than I have ever done before![/quote]

[HH]

I understood it was aimed at Non Residents, who tend to avoid tax in either country, I cannot see what is wrong with 35.5 %, very few will pay it, after all the other allowances, but if you are a UK tax payer, that is not Hollande's problem, its Cameron.

[blackduff]

Agreed, I have no problem with the CGT element, that is really tax on money for nothing (other than investing a substantial sum!)

It is the proposed 35.5% on income that I object to, say 20% fair enough, and as far as [it's not the same as working is it?] maintaining a house and 26 hectares is pretty much a full time job, harder work than I have ever done before!

[/quote]

You're getting the CGT which was already started in Feb. 1, 2012 from the Sarko's regime but the amount of tax Hollande is trying to get "a little tax on the profit" on rentals. This is only 15.5%.

Previously, Sarko and Fillion changed the secondary homes. They used to have a system which would reduce down to zero after fifteen years. The time has now changed to 30 years. Plus, the deductions have reduced for many areas. The total CGT on the homes was increased during this thirty year period.

Hollande inherited the secondary home changes but he inserted this new "Twist" for non-residents who are renting here in France but live elsewhere and do not pay any taxes to France. As some poster agreed, it's similar in the UK. If I buy a property in London, although I live in France, and rent this unit. There is tax expected to be paid in the UK.

I am still wondering how Hollande's people will find out if a owner rents here in France and doesn't say anybody he made money with this property. Probably the Tax d'Habitation and Tax Fonciere which is sent to a address outside from France, it's a good place to visit the property in the middle of the summer and ring the bell. Ask the people there who they are and where do the live. It's a good place to start.

Again, remember Hollande is just wanting a bit of tax ~ 15.5% ~ it's what was written on the UK press.

Blackduff

[Pighunter]

I really hope you are right and I am wrong, but the Telegraph article says

'On Wednesday (July 4th), the French government announced it was to increase taxes on foreign-owned second homes. Tax on rental income would rise from 20 per cent to 35.5 per cent, and capital gains tax on property sales would rise from 19 per cent to 34.5 per cent. The extra in each case is being labelled a "social charge".

Which is what I have based my responses on!

[blackduff]

Here's the first list from Opas is as follows:

http://www.dailymail.co.uk/news/article ... ax-1m.html

I have both the Daily Mail and the Telegraph shown by Opas. I printed both and if you go slowly, it's the same information.

Certainly if you have property here, and you live elsewhere, you're going to be wait before you don't have to sell this without paying CGT.

But, if you're renting the properties here, Hollande wants to take 15.5% of the profit from renting. Everyone forgets that there's a Tax de Sejour. It's low but many owners don't give this small amount to the commune where the property is located.

You'll find the information from the Daily Mail, since it's better written.

Once you see exactly what is happening, you can make better choices with your property.

Blackduff

[Owens88]

I really hope you are right and I am wrong, but the Telegraph article says

'On Wednesday (July 4th), the French government announced it was to increase taxes on foreign-owned second homes. Tax on rental income would rise from 20 per cent to 35.5 per cent, and capital gains tax on property sales would rise from 19 per cent to 34.5 per cent. The extra in each case is being labelled a "social charge".

Which is what I have based my responses on!

So Have I. The Daily Mail even uses a misleading headline.



http://www.telegraph.co.uk/news/politic ... homes.html#


This is short on detail as well.