Comments on: Capital Gains Tax http://www.twiku.com/2007/09/05/capital-gains-tax/ From a day, to a lifetime - A personal view from a Mediterranean village in France Thu, 20 Nov 2008 22:26:28 +0000 http://wordpress.org/?v=2.5.1 By: tony http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-718 tony Mon, 14 Apr 2008 08:11:39 +0000 http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-718 Hi Kevin, Simple answer - no - you must pay the tax on each gain. There are some allowances, but only way you could "re-invest" would be if you had a registered French property development company and this was you normal trading business prcatice. You can calculate the tax due with tools I have on my site at http://www.nizas.com/calculators/ Hope this helps Best wishes Tony Hi Kevin,

Simple answer - no - you must pay the tax on each gain.

There are some allowances, but only way you could “re-invest” would be if you had a registered French property development company and this was you normal trading business prcatice.

You can calculate the tax due with tools I have on my site at

http://www.nizas.com/calculators/

Hope this helps

Best wishes

Tony

]]> By: Kevin http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-717 Kevin Mon, 14 Apr 2008 03:01:50 +0000 http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-717 Dear Tony, I own a property in Paris which I have bought five years back for Eur 190,000, I hold a European passport but currently do not reside in Europe. The property is now worth Eur 350,000 and I am considering selling it in 2009 or 2010 (making benefit of the 10% reduction on capital gains after year 5.) If I purchase a new apartment in France from the capital gain (re-investment), would I still need to pay the full 33.33% capital gain tax, please kindly advise. Cheers, Kevin Dear Tony,

I own a property in Paris which I have bought five years back for Eur 190,000, I hold a European passport but currently do not reside in Europe. The property is now worth Eur 350,000 and I am considering selling it in 2009 or 2010 (making benefit of the 10% reduction on capital gains after year 5.) If I purchase a new apartment in France from the capital gain (re-investment), would I still need to pay the full 33.33% capital gain tax, please kindly advise.

Cheers,
Kevin

]]> By: Brian Lennon http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-564 Brian Lennon Tue, 19 Feb 2008 12:36:36 +0000 http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-564 Dear Sirs My wife and I bought a Longere seven years ago for approx 20,000.euros which required complete renovation. We proceeded to hire French registered builders and put in new walls,new floors,septic tank new roof and complete grounds. The total cost for the renovation is approx 200,000 Euros and we are now intending to sell at about 250,000 Euros. Can we offset the renovation costs against any Capital Gains Tax if we are liable for this tax. We are retired and live in the U.K. Many Thanks Dear Sirs
My wife and I bought a Longere seven years ago for approx 20,000.euros which required complete renovation. We proceeded to hire French registered builders and put in new walls,new floors,septic tank new roof and complete grounds. The total cost for the renovation is approx 200,000 Euros and we are now intending to sell at about 250,000 Euros. Can we offset the renovation costs against any Capital Gains Tax if we are liable for this tax. We are retired and live in the U.K. Many Thanks

]]> By: Tony http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-449 Tony Sun, 13 Jan 2008 16:05:23 +0000 http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-449 Hello Clifford, Your tax liability depends on your status at the time of selling the house. If the house if no longer your "maison principal" - that is it is no longer your main residence (that you live in France more than any other place or more than 183 days a year) and that you declare taxes in France, then it is a "maison secondaire" and liable for Capital Gains tax. If you are currently a non eu resident, then the tax base is 33 percent which reduced by ten percent a year after the fifth year (therefore it is zero after fifteen full years) - this is a tax on the difference between the buying cost and selling price - you can claim for major alterations but not repairs, if you have a certified invoiced from a French builder. I have not heard of the exemption you refer to, nor have Notaire I have asked, but if you have more information I would be interested to learn this. Best wishes Tony Hello Clifford,

Your tax liability depends on your status at the time of selling the house. If the house if no longer your “maison principal” - that is it is no longer your main residence (that you live in France more than any other place or more than 183 days a year) and that you declare taxes in France, then it is a “maison secondaire” and liable for Capital Gains tax.

If you are currently a non eu resident, then the tax base is 33 percent which reduced by ten percent a year after the fifth year (therefore it is zero after fifteen full years) - this is a tax on the difference between the buying cost and selling price - you can claim for major alterations but not repairs, if you have a certified invoiced from a French builder.

I have not heard of the exemption you refer to, nor have Notaire I have asked, but if you have more information I would be interested to learn this.

Best wishes

Tony

]]> By: dorte clifford http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-448 dorte clifford Sun, 13 Jan 2008 15:13:25 +0000 http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-448 I have heard that if a non-eu resident have at one time lived and paid taxes in France for at least two years, then there is a one-time exemption for selling a second residence without having to pay any capital gains tax. Could you expand on this and explain if there are other criteria that have to be met. I have heard that if a non-eu resident have at one time lived and paid taxes in France for at least two years, then there is a one-time exemption for selling a second residence without having to pay any capital gains tax. Could you expand on this and explain if there are other criteria that have to be met.

]]> By: Tony http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-435 Tony Mon, 07 Jan 2008 14:50:05 +0000 http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-435 I did not answer the health insurance question - As a resident, if you are over retirement age then you are entitled to health care, but you are advised to have a supplimentary insurance to cover 100 percent of the costs of any hospitaliation or treatment - this "top-up" insurance is not expensive, my mother who is 85 and who is retired in France pays 115 euro a month for 100 percent cover. She has had two hip replacements and other servies in the last two years, all paid 100 percent. I did not answer the health insurance question - As a resident, if you are over retirement age then you are entitled to health care, but you are advised to have a supplimentary insurance to cover 100 percent of the costs of any hospitaliation or treatment - this “top-up” insurance is not expensive, my mother who is 85 and who is retired in France pays 115 euro a month for 100 percent cover. She has had two hip replacements and other servies in the last two years, all paid 100 percent.

]]> By: Tony http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-434 Tony Mon, 07 Jan 2008 10:07:51 +0000 http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-434 Hello Yvette If your home is your principal home there is no capital gains tax to pay if you sell. Inheritance tax on the home would be based on a valuation after your death of over 900,000 euro. There are structures you could apply when you purchase, such as a "usefruit" or "tontine" which may help your Inheritance tax, or you could buy in the name of a special company, a SCI. There are other articles I have written about these and you can see them if you search the archives of the newsletters at http://www.nizas.com/newsletters/archives.html - or write to me. Hope this helps best wishes Tony Hello Yvette

If your home is your principal home there is no capital gains tax to pay if you sell.

Inheritance tax on the home would be based on a valuation after your death of over 900,000 euro.

There are structures you could apply when you purchase, such as a “usefruit” or “tontine” which may help your Inheritance tax, or you could buy in the name of a special company, a SCI.

There are other articles I have written about these and you can see them if you search the archives of the newsletters at

http://www.nizas.com/newsletters/archives.html - or write to me.

Hope this helps

best wishes

Tony

]]> By: yvette http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-433 yvette Sun, 06 Jan 2008 20:10:05 +0000 http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-433 We live in Canada - considering moving to France - would like information on cost of property taxes, capital gain tax if the home will be your principal residence and you decide to sell, also how much tax would our kids pay to inherate the property. We would be retiring in France. Health insurance in France - is it expernsive for foreiners? We live in Canada - considering moving to France - would like information on cost of property taxes, capital gain tax if the home will be your principal residence and you decide to sell, also how much tax would our kids pay to inherate the property.

We would be retiring in France.
Health insurance in France - is it expernsive for foreiners?

]]> By: Tony http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-401 Tony Mon, 03 Dec 2007 11:55:09 +0000 http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-401 Hello Tom, I have had a lot of correspondence with a qualified specialist Stephen Smith - I recommend you get in touch with him, he has sent me his terms and conditions which I attach to this mail. I am copying this mail to Stephen. Please let me know how you get on Sincerely Tony Hello Tom,

I have had a lot of correspondence with a qualified specialist Stephen Smith - I recommend you get in touch with him, he has sent me his terms and conditions which I attach to this mail. I am copying this mail to Stephen.

Please let me know how you get on

Sincerely

Tony

]]> By: Tom Burns http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-400 Tom Burns Mon, 03 Dec 2007 09:10:21 +0000 http://www.twiku.com/2007/09/05/capital-gains-tax/#comment-400 Tony I would love to get "competant paid professional advice from an advisor who is qualified and (most important this) insured to give this advice for your own particular circumstances" but unfortunately I haven't met anyone who comes close to this description (and I have shelled out plenty). I haven't given up- any idea where I could find this service- I certainly need it! Tom Tony

I would love to get “competant paid professional advice from an advisor who is qualified and (most important this) insured to give this advice for your own particular circumstances” but unfortunately I haven’t met anyone who comes close to this description (and I have shelled out plenty). I haven’t given up- any idea where I could find this service- I certainly need it!
Tom

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