It’s Complicated – A Quick Guide to Tax Increases on French Properties

It’s Complicated – A Quick Guide to Tax Increases on French Properties
Table of Contents
    Add a header to begin generating the table of contents
    Disclaimer: This article is based on legislation which was correct at time of publishing on March 15, 2021
    This page was last updated on May 6, 2021

    As our relationship with EU countries changes post-Brexit, so to do our rights and responsibilities.

    Hard on the heels of the news that Brits will only be able to spend 90 days out of every 6 months in the EU Schengen Zone, comes confirmation that UK residents with a second home in France will have to pay significantly more capital gains tax on property sales.

    As the old dating cliché goes, we have moved from ‘in a relationship’ to ‘it’s complicated’.

    Ahead of the introduction of the new system, we contacted interested clients with this excellent and well-informed article from Taxation, our industry publication specialising in tax law, practice and administration. For almost a century, Taxation has been the go to guide for accountants and finance professionals with a recent issue carrying this article from Paula Sparrow, Tax Director here at Butt Miller.

    For property sales in France, not just CGT but also social charges should be considered making the rather stark ‘bottom-line’ that the sale of your French property could attract a levy of 36.2% of any profit made on the sale. 

    There are exemptions, properties that have been owned for more than 30 years or sell for less than 150,000 Euro are not subject to either CGT or social charges, and as ever it pays to take expert advice.

    Once you have tackled the French system there may also be reporting requirements in the UK, but we are of course on hand to guide you through the minefield that overseas property has suddenly become.

    One final consideration, the appointment of a fiscal tax representative is now compulsory and all capital gains declarations must be supported by a representative accredited by the French Tax Authority… adding in the region of a further 1% of the property value to your final bill.

    It is indeed complicated, but as ever, we are here to keep you informed, offer help and point you in the right direction. You can read the original article from Taxation here and see other blogs, factsheets and client stories on the Insights page of our website.

    Get in touch today
    If you would like advice and you are interested in our accounting services please call, email or complete our website contact form:

    Name*
    This field is for validation purposes and should be left unchanged.

    Google Rating
    5.0
    Based on 31 reviews
    js_loader

    Please take a moment to read our reviews on Google. If you have any feedback about our accounting services then we would be delighted to hear from you.

    Who we help at Butt Miller

    We provide many different businesses with outsourcing solutions to help make bookkeeping and financial reporting simple. Our outsourced finance function is backed by sector specific experts who sit behind the scenes, crunching the numbers and providing valuable advice and insight.

    We are able to offer support across a number of different industries ranging from:

    Scroll to Top

    This site uses cookies. Click here to view our Privacy Policy.