French Property Capital Gain Tax New Rules
The French government passed a new legislation last night regarding the capital gain tax for second homes and investment properties. The new rules are:
- 2% tax allowance between the 6th year to the 15th year of ownership
- 3% tax allowance between the 16th year to the 25th year of ownership
- 10% tax allowance from the 25th
With the new rules, the capital gain tax will be Zero if you keep your property for 30 years instead of 15 years previously. The new legislation will be applicable from the 1 February 2012 . If you are intending to purchase a French Property, you can still benefit from the old rules if you sign your Acte de vente before the 1st of February 2012 .