Zut Alors !! ( = Blimey), New French taxes are no joke

The French government has announced a series of changes to the taxation of foreign owned second homes in France. Tax on rental income will increase from 20% to 35.5%, and on Capital Gains from 19% to 34.5% (although this is tapered for properties which have been held for more than 5 years). The French government have estimated that around 60,000 foreign owned properties will be affected.

This comes in addition to changes recently announced to the French Wealth Tax regime, which levies a % charge on assets over £1.3 million € (including assets held in trusts, which were previously ignored, and potentially brings the value of pensions into the equation). 

Whether the changes which focus on foreign owned properties will be legal is a moot point. Particularly after watching HMRC’s contortions over creating a level playing field for our own Furnished Holiday Let regime!!

For more, please contact julia.casimo@jkca.co.uk