Hi John,
Thanks for your last PM -I’m digesting it and will get back to shortly!
Everyone - I’m looking to see if anyone has any further info on this post on French property in which they say on the soccila charges 17.2% CGT sliding scale levy:
If you are a resident of France then the applicable basic tax rate is 36.2%.
This sum comprises capital gains tax at the rate of 19% plus 17.2% social charges.
However, residents in France from the EEA who are not affiliated to the French social security system are now exempt from the social charges, but subject to a ‘solidarity tax’ ( prélèvement de solidarité ) at the rate of 7.5%. This clearly applies to residents who are in receipt of an S1 certificate of health entitlement.
Critically, they point out 0n the next page -
As a result of a change of law in 2019, social charges on those resident in France holding an S1 certificate of health exemption (or similar) were abolished, and replaced by a ‘solidarity tax’ ( prélèvement de solidarité ) at the rate of 7.5%. That gives a combined total rate before allowances of 26.5% of the two taxes.
This change also applies to non-residents living in the EEA who sell their French property, eg second home owners.
However, see our article Social Charges on EEA Non-Residents concerning notaires who are not correctly apply the new rule.
No tapering relief appears to be applied on the solidarity tax.
The link’s below for info…
I haven’t come across this anywhere else - what’s peoples thoughts???
On calculations this would be a gain on the 17.2% rate until the 25th year of the social charges taper.
I’ve become very interested in this today because having received an offer on my flat I’m now thinking of keeping it and letting it out for a few years.
And PS the main home exemption advice for selling the previously main home property abroad within the year of moving seems to have definitely changed that it is only officially for France properties, (Blevins has updated theirs - it’s posted elsewhere) - but local tax offices may (do) continue to allow it.