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Take Advantage Now of the Change in Capital Gain
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If you would like to consider having your own "pied-à-terre" for your pleasure and profit, guests of any one of our luxurious Parler Paris Apartments can take advantage of a FREE one-hour consultation with Adrian Leeds while you're enjoying the apartment in the City of Light. It's our way of saying "thank you" to our community! Visit: ParlerParisApartments.com to book your stay and for more information or email Adrian at: adrian@adrianleeds.com Bonjour French Property Insider Subscriber, As one might guess, the changes to the capital gains tax laws is having an effect on the market...for the moment, in a relatively positive way for the buyer. These laws do not affect the sale of a primary residence, on which no capital gains tax is paid.
The French government requires that a seller have a professional tax representative to calculate capital gains at the time of a sale of property and the tax is deducted at the time of closing. You may choose your tax representative, SARF being among the choices. This past September 19th, the method of calculation of the capital gains tax laws was enacted. In immediate affect, the new laws have removed the original tax deduction of 1000€. As of October 1st, 2011, residents will realize and increase in payroll taxes of 13.5%. This does not concern foreign, non-resident buyers. Effective November 1st, 2011, 1) the deadline by the Notaires for recording of the transfers will be reduced to one month (except in cases where the award period is two months) and 2) property sold abroad must be recorded within one month of the sale by a recognized Notaire in France. As of February 1st, 2012, the new tax laws will take affect. Until this time, the law has allowed a 10% reduction of tax after the first five years of ownership, so that in effect, after 15 years of ownership, no capital gains tax was due. This has been changed to 30 years in the following calculation: * 2% for each year of ownership beyond the fifth (between 6 and 17 years of ownership) * 4% for each year of ownership beyond the seventeenth (18 to 24 years of ownership) * 8% for each year of ownership beyond the twenty-fourth (25 to 30 years of ownership) * After 30 years of ownership of the property, the gain will be totally exempt. The general rules of calculating the tax are as follows for sales by individuals: * The chargeable gain is calculated as follows (see section 150 V of the French Tax Code (CGI): Disposal price (Article 150 VA I of the CGI) = Gross chargeable gain * The gross chargeable gain is then reduced by: * This gives the net chargeable gain, which is taxed at the rate of tax which depends on the seller's country of domicile. Disposal price * This is the actual price as stated in the deed. If the price is not declared in full, the dissimulated amount is added to the price stated in the deed (Article 150 VA-I of the CGI) + Increased by any charges normally payable by the seller but which are paid by the buyer (38/39/40 Instruction of 14/01/04): > These include any capital charges and any indemnities declared to benefit the seller for whatever reason, but which are paid by the purchaser instead of the seller, - Less: > the VAT paid by the seller on this disposal (43 Instruction 14/01/04) > the costs borne by the seller, limited to (Decree of 31/12/03): Acquisition price (Article 150 VB-I of the CGI) * Defined as: * Are added to the purchase price, subject to justification and actual payment by the seller: Works * The cost of building, rebuilding, extension and improvement works are deductible: * Costs of roads, drains and utilities: Allowance for number of years of ownership The gross chargeable gain is reduced by an allowance of 10% per full year of ownership, from the 6th year onwards. There is total exemption after 15 years of ownership (Art. 150 VC-I of the CGI). Allowance of 1,000€ (Article 150 VE of the CGI) * A fixed allowance of 1,000€ per seller, whether the property is owned individually, in common, or with split usufruct/bare title. * i.e. this allowance rises to 2,000€ for sales by a married couple or by common law partners. * For sales by an SCI or registered partnership, the allowance stays at 1,000€ (and not 1,000€ per partner). As a result of the changes in the tax laws, owners of properties are quickly jumping on the bandwagon to sell their properties in order to realize the current tax benefits. The agencies are reporting a flood of panicked sellers and properties priced to sell quickly. This presents a small window of opportunity, between now and February 1st, 2012, to have a wider choice of property than we have seen in years and at fair prices. In addition, the current weaker euro contributes to advantageous moment. (1€ = U.S. $1.35490, £0.87420, Australian $1.35232, Canadian $1.37130) After February 1st, my guess is that owners will be holding on to their properties longer, reducing inventory and thereby increasing values based on the law of supply and demand. If your objective is to invest long term in a revenue-generating property, then now is a great time to make a purchase. And if you think that you're ready to divest of your French property, then consider selling. French Property Insider consultants can assist you with your decision and realizing your goals. For more information, email:Capital_Gains_Tax Soon I will be signing the Acte de Vente on the Nice apartment and beginning the renovation soon after. Since our arrival on the Riviera scene, there has been more interest by our readers in investing in Nice and environs where prices are about half of what they are in Paris. Our Property Search Consultant in Nice has been scouring the market for properties in central Nice that fit the bill for good investment. I doubt the properties will be on the market for long, so if you are interested in learning more about any of the following properties, be sure to contact us immediately. Well, there you are for now. Let me know what you think!
Two rooms entirely renovated on the last floor with an elevator, cellar and pleasant views. 36m2. Individual gas heat.
On the corner of rues Dalpozzo and de France, a two-bedroom, two-bath apartment on the second floor with an elevator (the rights of which must be purchased) with a balcony off the living room. 71 m2.
Two-bedroom apartment with 25 m2 terrace and a retractable awning. Currently under renovation, it is on the first floor with an elevator in a good quality building facing the side street and therefore, quiet. 50m2. If you are interested in learning more about these properties and others in the Nice area, please contact us at Nice_is_Nice
A bientôt, Adrian Leeds P.S. I am speaking on October 11th about property prices and trends at a free "Residential Property Investing Seminar" sponsored by BNP Paribas Investment Partners. (Scroll down for more information an to register to attend.) And for just a bit of blowing our own horn -- Le Palace des Vosges (Le Palace des Vosges), our very own fractional ownership property in La Place des Vosges, will be the backdrop this coming month for filming 'yours truly' by Eurocinema On Demand and Seductively French (Seductively French) in the production of lifestyle segments celebrating the European way of life designed to reach 36 million U.S. and Canadian television homes beginning December 2011 as well as airing in China on Metan Development Group's Hello! with half a billion viewers.
The Ile de la Cité is where life in Paris began centuries ago, centered around one of the world's most important cathedrals, Notre Dame. Just a few steps away is this old-world elegant studio apartment with windows providing a perfect and beautiful view of "Our Lady.". For more information on this and other fractional ownership properties now available, or to learn how you can design your own property, visit French Property Fractional. To learn more about "What is Fractional Property Ownership?," click here: frenchproperty.adrianleeds.com And to get the free "Paris, France Property Market Report," click here:
Tuesday, October 11, 2011 from 4 p.m. to 8 p.m. Join Adrian Leeds and other property professionals at this free international event for investors wishing to learn more about France’s dynamic property market. Speakers include experienced, independent property investors from France and around the world. Come to network with key players in the property industry and keep up-to-date with changes in the market. The event will run from 4 p.m. to 8 p.m., followed by drinks nearby.
BNP Paribas Investment Partners For more information and to reserve your spot, contact: justine.trueman@bnpparibas.com
Visit French Property Loan or contact Mortgage Manager John Rule at loan@adrianleeds.com Planning a trip to Paris? Or you just love reading every book you can get your hands on about the City of Light? Get Practical Paris, the indispensable guide written by veteran tour company owner (Nuit Blanche Tours) and featured in National Geographic. Save time, hassle and needless expense and make the most of your precious stay in Paris. BONUS: Access to a web page containing hundreds of Useful Links! Visit Practical Paris Helpful Conversions for Real Estate 1 square meter = 10.7639104 square feet
Practice speaking French and English. Make friends, discuss interesting topics, learn about other cultures, progress in understanding and speaking, naturally and easily. Meetsthree times a week -- come as often as you like! For further details, visit Parler Parlor
Copyright 2011, Adrian Leeds®
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