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TVA on second home sales

Posted by chilepepper-998208 - Created: 3 years ago
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10 replies (Showing replies: 1 to 10)

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Posted by buster-784461 - 3 years ago

I believe if the house has been owned for more than 5 yrs the notaire will offset 15% of the original price against the profit for capital gains - there is then a sliding scale of tax depending how long you have owned it!!

not sure whats happening with regard to the social charge on this sum!!

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Posted by ingetje - 3 years ago

all depends on your situation, do you live in France or not? but basicly you pay tax on the profit you made (if any these days!) and no you can not ofset any work you did yourself unless you invoice yoursef (but then again you would have to pay taxes on that so...?) and how much tax depends on your situation etc. Talk to a notaire.

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Posted by geegee42 - 3 years ago

You will have to check with the notaire but as I said ,my understanding is you cannot offset any work you do yourself including the materials you use,I think you might find its purchase price ,fees and any work done by registered artisans.

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Posted by chilepepper-998208 - 3 years ago

Huge apologies, I meant capital gains tax, complete mental blank ! thank you for your replies!!

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Posted by geegee42 - 3 years ago

My post should have read only capital gains not vat on capital gains sorry,with cap gains it won't make any difference when you started only what you sell for.

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Posted by ingetje - 3 years ago

perhaps the op should tell us a bit more...?

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Posted by geegee42 - 3 years ago

I think what the op is worried about is the vat payable on something like a barn conversion or the renovation of a property that had been de-registered as a habitable space,I am in a similar situation and it seems the vat no longer applies on capital gains,as far as off setting materials is concerned ,I was told that you could only offset materials used by a registered artisan and that a notaire would not accept a pile of receipts, in my situation it looks like if I was lucky too sell I would pay capital gains on everything above the original purchase price minus my tax free allowance bit.

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Posted by la Musique - 3 years ago

The rate of CGT charged on the sale of a maison secondaire diminishes over time. The person best placed to advise you is a notaire.

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Posted by Reveuse-918439 - 3 years ago

Just to add, the capital gains tax payable would be calculated as per the rate in force on the date when the sale goes through. So if you don't sell until next year or the year after, the calculation may well have changed yet again because they keep messing with the figures. 

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Posted by AQ-417490 - 3 years ago

Chilepepper - from your original posting, I was under the impression that your enquiry about TVA was in connection with renovation work done by contractors. However, now that we know it is work undertaken by yourself, then as buster and Reveuse have said, it is your liability to capital gains tax (impôt sur les plus values) that your enquiry relates to. 

If it is your main residence, there should be no such tax to pay, but if it is a maison secondaire, then you would be liable for tax on the increase in value. You are allowed to offset the cost of improvements (not simply repairs) within that period, but only if armed with all the receipts for such work (just materials used, in your case, if you did not use any contractors - your own labour doesn't count).

You might want to get more professional advice.