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An Exceptional Year to Sell Your Home

While 2012 was marked by a “wait and see” attitude towards selling property due to the global and Eurozone economic climate, 2013 has a new impetus that is creating a more favorable ambiance for those who are considering in selling their home this year.  In effect as of September 1st 2013 and running until August 31st 2014, an “exceptional” 25% abatement in the total taxable part of the capital gains for second homes was established by the Hollande administration to boost the real estate market.

So what does this mean for you?

This means that if you have a second home in France that you have been considering selling, perhaps to upgrade/downgrade or would like to explore another area in France, you have until before the 31st of August of next year to sell your property in order to enjoy the 25% abatement.

In addition, the holding period for a property to be exempt from capital gains that was originally 15 years then dramatically changed to 30 years, has been brought back down to 22 years.  Please note that this only applies to capital gains and not social contributions which are exempt after a 30 year holding period.

Below you will find the calculations that demonstrate the exceptional 25% abatement and without, for both French citizens and for citizens residing within the European economic zone.

frenchtax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

foreign tax

 

 

A great resource for tax information and regulations for non-residents can be found at SARF -The Accredited Tax Representatives for non-Residents.