Thursday, October 4, 2012

Tax on sale of second homes - update

Since I posted the information below, the French government of François Hollande has announced that it is studying the question and - 'in the interests of getting the property market moving again' - may introduce proposals some time in 2013.

There is some talk of shortening the 30 year 'no CGT' ownership period to 22 years, and possibly lowering the capital gains tax threshold. However the government's vague talk of reforms has had the opposite effect - instead of stimulating the market, more second home owners are sitting back and waiting to see if they will pay less CGT on sale some time after 2013.

Finally, a reader has pointed out that in my earlier post I omitted to mention that non-EU owners of second homes pay even higher rates of CGT than French and EU nationals, totalling around 50%.