JUST getting your head around the ins and outs of Capital Gains Tax can be a big enough challenge, but recent changes have only added to the mix.
The changes came into operation at the turn of the year and they mean that instead of people declaring any gain on their annual tax return, it is declared by the notaire handling the sale.
The Angloinfo website features a very extensive and thorough explanation of the rules that has been written by solicitor and Chartered Tax adviser David Anderson.
In the piece he highlights that non-residents of France who are members of the EU will actually pay less tax than those considered resident.
David Anderson also goes on to explain how any gain is calculated, the process of payment and the impact of the changes in relation to the UK.
Comments
4 responses to “Tackling Capital Gains Tax”
French Capital Gains Tax (CGT) on the sale of property is charged @ 16% of the gain if you live in the EU (33% if outside the EU). There is a reduction factor applied @ 10% for each year that you own the property after the first 5 years. No CGT is payable if sold after 15 years.
I live in the EU bu not in France where I have a holiday home which has had electrical, plumbing and building work done by professional artisans and with official receipts. I do not propose to sell the property at present but if I ever do will I only have topay 16% gain after off setting the purchase and sale costs plus renovation costs for the first 5 years of ownership. Thank you
nd I have totally renovated the property and would now like to sell. we did’nt use any french or vat registered workmen on the project. If i sell now what is the position regarding capital gains or other taxes, and would it be better to sell at a later date, say five years!!!
Hi Steve, is difficult to know exactly your circumstances, this French Entree article may help:
http://www.frenchentree.com/fe-legal/DisplayArticle.asp?ID=851
All the best, Craig