Coast and Country in France

Capital gains Tax (CGT) on the sale of a property in France for any house which is not a principal home  starts at 16 percent up to 33 percent for non-EEC residents.

It reduces by 10 percent a year after the fith year of ownership and can be zero after 15 full years of ownership.

The costs of purchase and any major building or alterations can be deducted from the capital gains only if these are done by approved, certified French registered builders against validated and approved invoices.

The Notaire involved in the sale of a proeprty is legally resoponsible for investigating and approving all these bills.

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Dear Sir

My wife and I bought a Longere seven years ago for approx 20,000.euros which required complete renovation.

We proceeded to hire French registered builders and put in new walls,new floors,septic tank new roof and complete grounds.

The total cost for the renovation is approx 200,000 Euros and we are now intending to sell at about 250,000 Euros. Can we offset the renovation costs against any Capital Gains Tax if we are liable for this tax. We are retired and live in the U.K.

Many Thanks

Brian

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Dear Brian

If you have correctly receipted bills from the registered French builders and if this is for major construction and significant alterations (not repairs or decoration), then these bills can be allowed against Capital gains Taxes.

On the figures you give me, with the permitted allowances and costs, you should have very little to pay in CGT - it may be advisable to meet and talk to the Notaire you are considering using for the sale - their advice should be impartial and for this will be free.

Hope this helps

Bonne Chance

Tony

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Dear Tony

Many thanks for your prompt and informative reply, We will as you advise speak with a notaire when we proceed with the sale.

Regards

Brian

Building in France, Business in France, coast country france, French life, fruk, living in france, Personal, Real Estate

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