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.
Inspired in part by by Explorimmo.com article on French capital gains
Important note date of article the law may have changed
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