Capital Gains Tax Law Reforms Planned to Boost the Market
Volume XI, Issue 31
We knew it would come. When the capital gains tax laws on secondary residences went from a 15 year holding period to 30 years in February 2011 under the past administration, we all held our breaths. Property came off the market, prices went up, home improvement spending suffered and the market went stagnant. With sales volumes plummeting the past year, and predicted to go even lower, a boost will be given thanks to plans to reform the real estate capital gains tax laws, as presented this past July 18th by Bernard Cazeneuve, the B
udget Minister.
Proposed to be effective from September 1, 2013, the reform will affect property other than main residences and rental properties. Instead of the current 30-year plan, the holding period will be reduced to 22 years, social security contributions will be reduced gradually and eventually exempted entirely after a 30-year holding period.
For an additional boost, there will be an exceptional tax reduction of 25% on sales that take place between September 1, 20013 and August 31, 2014. And to discourage constructible land holdings, the government intends to create incentives to boost the housing development market.
To read the latest report by the Notaires de France, download the PDF (in French).
Therefore now is the time to sell! If you have a property in France you are thinking of selling and wish some assistance, don’t hesitate to contact us.
A bientôt,
Adrian Leeds
Editor, French Property Insider & Director of The Adrian Leeds Group, LLC
Email: [email protected]
P.S. We just received word that another new episode will air on Wednesday, August 28th at 10:30 p.m. EST and 1:30 a.m. EST!!! — “Planning a Future in Paris, France,” Episode HHINT-5612H — Dr. Jayne Lee fell so in love with Paris that she geared her career in medicine towards moving there. Soon enough she found a job practicing telemedicine and fell in love with Edouard. But for these newlyweds, buying an apartment in one of the most coveted and expensive cities in the world isn’t as easy as falling in love. Property Consultant Adrian Leeds searches for a compromise when House Hunters International goes to Paris, France.
Full details for each episode is available at Adrian Leeds on House Hunters International.
P.P.S. France always makes sense for anyone who dreams of moving overseas — it offers a good climate, unspoiled countryside, top-notch culture, excellent health care, affordable real estate, rich traditions and history, and, of course, the romance of Paris. Learn all the information you need to make the move to the world’s favorite destination with France: The Owner’s Manual, edited by me and Schuyler Hoffman. Get your copy today!
P.P.P.S. There will be no French Property Insider edition on Thursday, August 22nd for the vacation period. We still publish 50 issues a year free of charge! Encourage your friends to subscribe at French Property Insider
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