Sell by august to beat french cgt, say experts

Photo: Deepakhere.Mypixels

President Francois Hollande introduced a 25 per cent discount on Capital Gains Tax for second homes in an attempt to stimulate the housing market. The discount applies to all sales made between September 1st 2013 and August 31st 2014, giving homeowners four months to complete transactions before the levy is raised again.

Richard Way, Editor at The Overseas Guides Company, comments: “With a little over four months of the discount period left, vendors are reminded that time is running out to wrap up a sale, especially as much of France traditionally goes on holiday in July and August."

“Vendors that do make a sale and qualify for the reduced CGT are being warned not to throw away that saving – considerable in some cases – by not repatriating the proceeds of their sale in the most cost effective way.”

Way adds that there are signs of improvement in the country's property market in the first three months of 2014 compared to the same period last year.