DISCUSSIONS

Find the answers to many of your expat questions here

View Latest Posts

You're missing out...

As a member you can enjoy exclusive info and offers.

REGISTER NOW

Tax on property sales

Posted by london lass - Created: 3 years ago
0 0
Sorry no image available

5 replies (Showing replies: 1 to 5)

Sorry no image available
Posted by Reveuse-918439 - 3 years ago

I take it to mean the OP owns 2 properties and doesn't live in either of them. A lot of people (especially Parisiens) are in the position of being tenants in their résidence principale and owning a résidence secondaire. The notion of principale/secondaire has nothing to do with ownership. Basically, it's where you do/don't submit your tax return from. When the fisc calculate your taxe d'hab, the address on the tax form is treated as your res princ and the taxe d'hab for that address is worked out based on the info given on your tax return, applying any reductions for age/low income etc. For any other properties where you pay taxe d'hab, it's billed as a résidence secondaire at the full rate (or a higher rate for résidence secondaires in some places) with no reductions.

Sorry no image available
Posted by Lapin-436112 - 3 years ago

I think the op means he rented it out to someone and now wants to sell it on.

have a look here for all the details about the CGT.

http://www.french-property.com/guides/france/finance-taxation/taxation/capital-gains-tax/

this is the basic, so depending on your situation really:

I. Resident of France

If you are a resident of France then the applicable basic tax rate is 34.5%.

This sum comprises capital gains tax at the rate of 19% plus 15.5% social charges.

II. EEA Resident

If you are not resident in France, but you are resident in the EEA (as well as Norway, Iceland and Liechtenstein), then the applicable basic tax rate is the same - 19% plus 15.5% social charges, giving a total charge of 34.5%.

This rule applies for all sales since 17th August 2012, when non-residents became liable for social charges.

There is substantial legal controversy over this charge, and the European Commission have commenced legal proceedings against France as they consider the imposition of social charges on non-residents of the EEA to be contrary to EU regulations.

III. Non-EEA Resident

Those who are neither resident in France nor the EEA pay capital gains tax at the rate of 33.3% plus 15.5% social charges, giving a total basic charge of 48.8%.

This rule applies for all sales since 17th August 2012.

If you are based in a tax haven that does not have a tax agreement with France the basic rate that applies is 75%, plus 15.5% social charges.

Sorry no image available
Posted by Burt Lancaster - 3 years ago

If you rent something you don't own it, i find the OP a little confusing.

 

As said speak to a pro, only way to get it right.

Sorry no image available
Posted by Lapin-436112 - 3 years ago

there are already lots of topics on this topic on this forum.

yes there is tax but no way is it 60% and its only on the profit! so if you are lucky enough to make any profit on your sales then you will probably pay about 20 to 25% tax on that. it has recently changed as you are no longer obliged to pay the taxes social on it. someone will be able to tell you the exact %

Sorry no image available
Posted by Corsaire-975460 - 3 years ago

Best advice - take no notice of anyone on here (except me!) and get the facts from  a professional.