If you are a French property owner or would like to be you will need to know the following details:
One
New Tax on Secondary Residences
In 2015, local municipalities (communes) will get to decide if they will increase the ‘taxe d’habitation’ by 20 percent on furnished properties that are not principal residences.
It is recommended that before you decide to buy or rent a secondary residence in a particular area you check the local rules of renting and how they can impact your purchase.
Two
Tax Relief for Sale of Land
Owners of French land you can build on have a tax benefit if the sale is completed before the 31 of December 2015. The seller can benefit from a 30 percent reduction in income tax and social levies on the capital gains realized from the sale. In contrast, if you keep the land instead of building you may have an increase in property tax.
Consult you local French tax expert and / or notary for more details.
Three
Tax Relief on New Builds that are Rented
Depending on how long you rent out a newly acquired piece of French new construction you can have up to a 21 percent tax reduction on the value of the property.
Check with you local French tax adviser and agent for more details. If you read French here are details.
Four
Interest Free Loans for New and Old
A local loan at zero interest rate called ‘LE PRÊT À TAUX ZÉRO’ is typically associated with the purchase of a new property. Now in 2015 you can seek this form of loan if you are buying pre-owned property that needs a large renovation. The value of the renovation has to exceed 20 percent of the value of the purchase price of the property.
Check with you English speaking French real estate agent for more details or if you read French visit the French government site here.
Five
New Tax Credit on Energy Conservation Renovations
You can receive up to a 30 percent tax reduction based on the expenses you incur to renovate your home to make it more energetic.
To learn more contact you local English speaking French real estate agent and tax adviser or if you read French visit the government of France website here.
Six
Rent Control in Paris
Depending on the location of your French real estate in Paris, the loi ALUR states that on the signing of a new lease the rent of a property cannot exceed by 20 percent the median rent set by the local prefecture. L’Observatoire des Loyers de l’agglomération parisienne (OLAP) is in charge of setting these rental guidelines. Their research is now completed and the rule is now set to take effect.
Confirm with you local English speaking Parisian real estate agent how this can impact your French real estate investment.
If you read French visit the source Explorimmo article here
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