Buying a French property will be a little bit more expensive beginning on March 1st 2014 in at least four French departments. This is not caused by an increase in property prices but because of an increase in the French government transfer tax.
This tax is paid as part of the notary fees paid by buyers in France.
The French tax paid to the Treasury will increase in certain areas from 3.8 to 4.5 percent of the sale price. This will apply to ‘actes passés et des conventions conclues’ between the first of March 2014 and the 29 February 2016 as authorized by the French budget for 2014. The purpose is to bring needed money to communities who are struggling financially. This is because overall the transfer tax obtained by the Treasury has gone down 50 million euros between 2012 and 2013 according to Eric Ciotti, President of the General Council.
For example, if the sale price of a French property is 100 000 euros the amount will increase from 3800 euros to 4500 euros.
Original article in French here
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