Britons in France warned of steep capital gains tax rises when selling property

British expats who own property in France are being warned they face a sharp rise in their capital gains tax (CGT) after the Brexit transition period comes to an end on 31 December 2020.

Once the deadline passes at the end of the year Britons who sell their second homes in France will pay 36.2% of the sale in tax and social charges. This contrasts with just 7.5% of the sale as currently applied to all citizens of EU member countries.

The rise can be attributed in part due to Britons no longer being except from social charges due EU healthcover. This means that at present British expats pay only a small fraction of the social charges that would normally be due upon the sale of a second home in France.

Alison Ashby, director Junot Fine, who partner with Knight Frank in France, said: “There are those seeking a change of lifestyle post-lockdown, there are others wanting to benefit from record market prices in anticipation of a potential economic slowdown, and for many international investors, there is the appeal of Paris property as a refuge during turbulent times.”

 

Subscribe to International Investment’s free daily newsletter

Source link

Add a Comment