I have a quick question, triggered by something I’ve had rumbling around in the back of my head for some time.
I bought my place in Paris about 3 years ago; life has been so intense that I haven’t been able to make it over from NYC for over a year. I love the apart, but I don’t see my life getting easier for a while, and am thinking that sentiment isn’t a good enough reason to keep it, perfect as it may be.
I seem to remember hearing something about the French tax system being particularly aggressive on reselling real estate in less than 5 years after acquisition, as a way to cut down on real estate speculation, as well as to fund the limousines and drivers of the ruling party.
Anyone know if this is in fact true? I think my place has gone up in value a bit, but I’ve spent quite a lot renovating it, so it may all be mitigated.
Just means that you pay the tax d’habitation and not the tennant as far as I am aware.
Things are changing and if you are going to sell, I’d sell sooner rather than later.
WHY MUST THEY HATE ME SO?!
Thanks, Steve - that is a neat and authoritatively depressing summary, and exactly what I need to know.
I don’t let my place out (probably an even worse crime) - does that have any current particular tax implications that you’re aware of? I’m not a landlord.
You will be taxed on any profit you make on the sale (Diff between sale price and purchase price + cost of work done) . The amount of tax you pay starts to reduce after 5 years of ownership and is 0% after 15 years. But this is changing and you may end up paying more.
There is also talk of a new tax coming in for non resident landlords who don’t let their properties full time, this will effectively double your local taxes (tax d’habitation + tax foncieres)
Steve