Proposed new french property tax not as expensive as some fear

The proposed new property tax for holiday homeowners in France may hit the rich but others may not feel the effect quite so much, according to French property experts.

The new tax has been approved by president Sarkozy’s cabinet and if approved by parliament will take effect from 2012 onwards. The tax will hit all those who own a French holiday home and who don’t rent it out on a long-term basis.

It could thus even hit French expats living abroad who are no longer residents for tax purposes, although not if they’ve paid tax for three of the previous ten years, which will probably account for the majority of people in this position, according to Sextant Properties.

Also the tax will have no effect on investment properties such as French leasebacks and properties that are rented out.

Source: PropertyCommunity.com