Monday, March 10, 2014

Real Estate: increased taxation, non-resident investors will they flee Côte d'Azur?

The new government has proposed in its Amended Finance Act for 2012 that real estate income, rents or capital gains received by individuals ( French or foreign) who are not tax resident in France , are subject to social security contributions . Therefore, the measure aims to eliminate unfair tax advantage held by subjecting income derived by non- residents from immovable property situated in France social deductions combined statutory rate of 15.5%.

These households may for example be foreign investors without special relationship with France, or expatriates , active or retired people living abroad , who retained their property in France . Concerning rents, the government considers that the imposition involve about 60,000 households receiving an average of 12,000 Euros per year on their property income property in France .

The measure will apply to capital gains from the entry into force of the law but with retroactive effect from 1 January 2012 for rents . The government hopes to recover 50 million euros this year and ME 250 per year from 2013.

This tax increase should primarily concern the luxury real estate in areas like the Riviera and to a lesser extent Paris continues to dream wealthy foreigners. The Chairman of the luxury real estate network Coldwell Banker France and Monaco , Laurent Demeure , is also convinced that this will lead to a decline in investment from the French non-residents generally choose to prepare their property back in France for their retirement.

" This bill will result in a lower final sales volumes in geographic areas such as Cannes , Nice, Toulouse , Bordeaux and Nantes, prized by those investors who typically buy at a higher price than the market , Laurent Demeure analysis. According to him, this will also divert the real estate investment destinations like Miami that already count more than 30,000 French pensioners living on site , or as Morocco, which also count about 30,000 French retirees.

No comments:

Post a Comment