2013 Reform of French Capital Gains on Real Estate Property

The French government has announced the total exemption of the capital gains tax based on length of ownership on French property maybe reduced on the first of September 2013 from 30 years to 22 years. In addition, there is a new temporary special allowance of 25% for one year. (Maybe, since the concept has yet to be sworn into law)

If approved, their is an additional special rebate of 25% will apply to sales made between 1 September 2013 and 31 August 2014.

The goal of the French government with these changes in capital gains taxation is to increase activity in the French real estate market by contributing to the ability for some owners to reduce their prices since they no longer have to pay capital gains tax. The belief is that if prices are reduced French real estate sales will increase.

IMPORTANT NOTE: this government announcement needs to be made law before it is effective.

You will need to consult with a notary or your tax adviser to find out if these changes have taken place and how these changes will impact you. If you would like to speak to an English speaking French notary or English speaking French tax adviser contact us here we can guide you free of charge.

Inspired in part by by Explorimmo.com article on French capital gains