Carlton International - Luxury Real Estate
Luxury Property in Cap d'Antibes
Luxury Property in Ramatuelle
ST. TROPEZ, FRANCE, November 08, 2011
/24-7PressRelease/ -- Experts believe the new law will most likely effect property in areas with high international investment, making
luxury villas for sale in the South of France a likely effected market.
Today the current law on capital gains (the profit accrued between buying and selling), is as such -
- 31.3% capital gains tax rate for French residents (French tax payer).
- 19% capital gains tax for all EU residents.
- 31.3% capital gains tax for Non EU residents.
- 50% capital gains tax for residents in a tax heaven with no tax treaty with France.
Current rules dictate that for the first 5 years of a property's life it is subject to full taxation, thereafter, between 5 and 15 years there is a 10% discount before becoming exempt from taxation completely after 15 years of ownership.
The new law to commence from the 1st of February 2012 will see the timescale between construction and exemption from tax doubling from 15 years to 30 as well as the scale of tax discount being reduced and set in stepped reduction format.
- A 2% tax reduction between years 5 and 16 of ownership.
- A 4% tax reduction between years 16 and 24 of ownership.
- A 8% tax reduction between years 24 and 30 of ownership.
This new tax will apply to all
luxury real estate in France from February. Property bought prior to this date will remain under the current tax system.
The new capital gains tax rate will remain largely unchanged in themselves except for French residents (French tax payers), who will see a rise of 1.2% on their tax rate from 31.3% to 32.5%.
Estimates calculate the French government will see a rise in income from EUR180 million in 2011 to EUR2.2 billion in 2012. This jump has been put down solely to this new tax system.
The
luxury property market on the French Riviera will likely see the effects this new system will create in the final months of 2011 as sellers, likely not French residents but oversees owners, realise they could save a substantial amount of money by selling before February 2012.
With evidence in the last few months to support industry experts in their belief of an influx in luxury properties emerging onto the market, buyers will have greater choice and benefit from reduced asking prices on
property for sale in the South of France.
For further information on this topic or how it could affect you please visit Carlton International online or stop by one of our offices along the Cote d'Azur. For those looking to purchase
luxury property on the French Riviera Carlton International can assist you in your search. Carlton International represents some of the most exclusive
property for sale in the south of France. St Tropez, Cap D'Antibes, Cap Ferrat and
Cannes real estate are all available to be viewed through the website at
Carlton International.
Website:
http://www.carlton-international.com---
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