Property taxation may be complex for whom invest in France. Simple key informations below.
Property taxation in France concerns the taxes and duties associated with the ownership and sale of real estate. Here are some key elements in simple terms:
Property tax: This is a local tax paid each year by the owner of a property. The amount is based on the cadastral rental value of the property.
Capital gains tax: When you sell a property, you may be liable for this tax on the gain made. However, there are tax exemptions or reductions depending on the length of time the property has been held.
Council tax: This tax is paid by the occupier of the property on 1 January each year. The amount depends on the rental value of the property and other criteria.
Tax on property income: If you rent out a property, you will have to declare the income from this. This income will be subject to income tax under a specific tax regime.
Property VAT: VAT applies to the purchase of a new property. The rate of VAT varies according to the type of property and its use.
Transfer duties (notary's fees): When selling a property, the buyer must pay notary fees, which include transfer duties. These fees are calculated as a percentage of the sale price and vary according to the nature of the property and its location.
It is important to note that this information is general and simplified. Property taxation can be complex and vary depending on a number of factors, such as the nature of the property, its use, location, the owner's personal situation, and so on. It is therefore advisable to consult an expert or a tax professional for advice tailored to your specific situation. I have many partners in Nice, like Lawyers specialised in Tax. Contact me here.
