Good news for holiday home owners in France!
As of January 1, 2019, the new French Finance Bill reduces the capital gains tax – impôt sur les plus values - on the sale of holiday homes in France. This tax, which is collected by the notary at the closing of the sale, is reduced by 9.70%, which is a reduction from 36.20% to 26.50%.
If you are considering selling your holiday home in France, the tax gains tax will therefore from now on be lower. The tax reduction applies to those who live and pay taxes in an EU member state or Switzerland and who are covered by the public health insurance (the law does not apply to people who have a permanent residence in France!).
For those of you who live, pay taxes and have your primary residence in France, your property can be sold without payment of capital gains tax, after moving to another EU country (here specific deadlines, thresholds, etc. apply).
The capital gain is calculated as the difference between the sale price (excluding selling costs and VAT) and the purchase price – or the value that was reported when the property was received as a gift or by inheritance. Read more about the French tax system in our blog post on the 2018 Finance bill
Please do not hesitate to contact us, if you would like to know more about the French taxation on property gains or if you are considering selling your property.