Property buyers and investors considering France should take note of new taxes which could make their property purchase more expensive than they planned.
Richard Way, Editor at The Overseas Guides Company, told PropertyGuru: “High earning residents aren’t the only people in France to be hit with tax hikes in the New Year, thanks to an increase in the rate of VAT and French communes being given the ability to raise notaire fees, making it more expensive for property buyers as well.
“As from January 1, the VAT levied on new-build property in France has risen to 20 percent from 19.6 percent, meaning properties have become 0.6 per cent more expensive – although VAT will be waived on new leaseback property.”
Way added that the decentralising of notaire fees means they could – and probably will – be raised by 0.7 per cent in many parts of France, equal to an extra €2,100 for a €300,000 property.
He said; “These rises might sound like bad news, but French property buyers and investors can take comfort from the fact that the weak Euro – compared with most of last year – should in most cases compensate for the extra taxes.”
Andrew Batt, International Group Editor of PropertyGuru Group,
wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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