Exchange rate eases french vat pain

The exchange rate is easing the pain of VAT rises in France.

From 1st January this year, the VAT levied on new-build property in France has risen to 20 per cent from 19.6 per cent, meaning properties have become 0.6 per cent more expensive.

"VAT is waived on new leaseback property," notes Richard Way, Editor of the Overseas Guides Company, but adds that exchange rates are the main comforting factor for Brits in France.

"The decentralising of notaire fees means they could – and probably will – be raised by 0.7 per cent in many parts of France... but British buyers in France can take comfort from the fact that the strong pound – compared with most of last year – should in most cases compensate for the extra tax due!"