Tuesday, 13 April 2010

Capital Gains on French properties

If you are thinking of selling your French property, you might wonder if you are liable for Capital Gains (impôt sur la plus-value).

If your house in France is your main place of residence, you will be exempt from capital gains.

However, if you are not a French resident, you will be liable unless you have owned your property for over 15 years.

Some building work may be deducted from Capital Gains (extension, conservatory, etc) but you need to be able to prove the work has been carried out by supplying your local notaire with invoices from registered builders.

Small improvement jobs like fitting a new bathroom or kitchen can not be deducted.

Check with your notaire before putting your house on the market. He or she will be able to tell you if you are liable for capital gains or not. If you are, he or she will keep the tax amount from the sale proceeds and pass it on to the tax office!

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