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Panic: New tax law in France. True?

Posted by me_2003 - Created: 16 years ago
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10 replies (Showing replies: 11 to 20)

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Posted by will 06 - 16 years ago

This is already in force for anybody resident in Monaco who ownes  a home outside in France.After all who would want to live there the  whole time.

Portugal has already imposed this tax on all second/holiday homes.

If imposed in France I cant see it having much effect on prices

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Posted by LaCremedelaCreme - 16 years ago

Surely, it must come as no surprise whatsoever that the French government would do something like this to protect the interests of French people against foreign investors/speculators.

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Posted by lynnettejane - 16 years ago

Hi Me2003, this tax thing is a bit of a puzzle. I have contacted French taxation website asking if there are any further taxes, other than taxes d'habitation and fonciere in existance. According to the email I received back, 06 (Villefranche S Mer in particular) is an area of shortage of housing,  low incomes, therefore owners of second homes are liable to pay a tax on empty properties. I have emailed them back to try to find out more. I have read about this tax, but I'm sure that according to that information second homes were exempt. I'll keep digging and let you know what I find as I would rather be up front than find I owe a massive amount of tax,better to meet it head as I doubt it will go away. A question though to anyone who might know, I certainly had never heard of this tax when buying, should at least the notary have informed us? We have only ever been told about the two above mentioned taxes, I have never come across any mention of this extra tax when researching the process of buying in France from anywhere. Would appreciate any thoughts on thisregards Lynnette

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Posted by me_2003 - 16 years ago

sorry this is nothing to do with stars and bars...

we were in stars and bars discussing the topic...

only know of hear say...

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Posted by lynnettejane - 16 years ago

This sound s nasty, can anyone tell me if this is a one off payment or is it going to be a yearly thing, going back up to 10 years sounds a bit Draconian. Does anyone know the grounds for this extra tax? How much did your friends in Stars and Bars get stung for? Is there any ground for appeal? regards Lynnette

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Posted by me_2003 - 16 years ago

hello, was taking to some folk in stars and bars tonite....

the bills are coming in the post...some people have already got them...they can be back dated by up to 10 years....

 

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Posted by me_2003 - 16 years ago

 thanks mike.

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Posted by mike-179830 - 16 years ago

It's not really a "new" law, being about ten years old...

"Notional income tax" is payable based on 3X the notional rental value of a house (even if it's not rented out), unless the non-resident owner :

is resident in a country that has a double-taxation agreement with France, orhas real income greater than the notional rental income (X3), orlives in a country that has a reciprocal taxation agreement with France and can prove that they have been taxed more than two thirds what they would have had to pay in France.

See section 164c of the Code Général des Impots (takes a while to load, and then you have to scroll right down to near the bottom).

The Anglo-French Double Tax Treaty of 22 May 1968 is one example of a double-taxation agreement that renders this irrelevant, for UK residents in this instance. However, it remains to be seen if the UK/France Double Taxation Convention [PDF] (signed on 28 January 2004, and not yet enforced) turns that previous agreement upside down in this one area...

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Mike

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Posted by chris m-183743 - 16 years ago

There is talk, I understand, in the UK, that holiday or second homes owned through an SCI may now be treated as a taxable benefit for UK tax payers.  I have not heard of a French tax.  I do not know the proposed scale of the tax. Maybe this is what you have heard?

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Posted by me_2003 - 16 years ago

OK.  I wait a serious reply. This is supposed to be a new idea from SARKOZY.