IFP Forums

[lombraud]

Can anyone tell me please my likely taxation scenario for the sale of my french house.
It was bought as a primary residence 11 years ago and I own no other property . We lived there one year on the initial purchase then returned to Aus.
We have had substantial amounts of time there, one 6 month stint and several shorter bursts.
It has not been rented nor is it an investment property.. Just largely sitting idle.
Do I have to pay the 33% as an Australian resident or does my uk citizenship, and the fact that I have owned the property for over 10 years reduce the amount of capital gains I will have to pay?

[Ed.]

Hi Lombraud,

You are liable at the rate of 33%, but as you have owned property for 11 years, you are entitled to 60% relief. Once owned for 15 full years, you are completely exempt.

You can read more at:

http://www.french-property.com/guides/france/finance-taxation/taxation/capital-gains-tax/

[julian.shuba]

You will also need to take out a capital gains tax insurance or guarantee that is required for a non French resident, at the point of selling a second home in France.

While the Notaire calculates and deducts the CGT on completion, they insist on a 3 year insurance policy being taken out, in case the Govt later investigates and finds that a higher tax may have been due.

The cost of this was quoted to me at between 1% and 0.75% on the total sale price. (ie on €1million at 3/4% = €7,500 premium).

Is there anyone out there who can help with a lower cost guarantee or insurance?

Julian S

[tasmanisle]

Good morning Lombroud,
I am an Australian considering purchasing a home in France, could I please get your email address or a contact phone number where I could call you, I am sure that you could give me a few tips. My email address is: r_burgess@email.com and I am in Brisbane.
Regards
Rob