France has changed the term of the tax exemption on capital gains when selling real estate

The French government announced that the period after which the owner of property exempt from tax on capital gains (CGT), is reduced from 30 to 22 years. According to the authorities, this measure will help to revive local housing markets.

This tax is levied on the sale, it is imposed on the amount constituting the difference between the original purchase price and the price at which the object is acquired by a new owner.

In 2012, the French government has taken a number of unpopular measures aimed at changing the tax system. In early 2013, housing sales in the country decreased markedly. For example, for citizens of countries outside the EU, the rate of NPK was increased from 33.3 to 48.8 %.

“Last year’s reforms to taxation of real estate have deprived France of many foreign buyers, but today, thanks to the amendment, Francois Hollande, many will return to the market,” said Nicholas Leach, partner at Athena Advisors. The experts of this company agree that people who buy property in France, own it for at least 10 years.

It is expected that the new term of the tax exemption on capital gains will operate from September 2013.

This tax is imposed on property that is not used as a primary residence. According to Athena Advisors, the share of such facilities on the French market is 8 %. In addition, this tax applies to rental housing, whose share is 15 %. Thus, the CDD are subject to a 23 % of properties in the country. For houses and apartments in France, used for permanent residence, this tax does not apply.

Yulia Kozhevnikova, Tranio.Ru

Comments are closed.