How Has Brexit Affected Selling Property in France?
If you have a second property in France, keeping up with all the changes inflicted upon you and your property since Brexit might seem impossible. But you have come to the right place. At France Tax Law, we are French law experts you can rely on. If you are wondering how Brexit has affected how you can sell your second property in France, we can help. We have put together a comprehensive guide to answer your questions concerning selling your property in France in the wake of Brexit.
How Has Brexit Changed How We Can Sell Property in France?
If you were not already aware, the aftermath of Brexit has affected the affairs of British ex-pats in France and even those of us who just like to visit the country regularly. So, if you have a second home or property in France and are thinking about selling, there are a few changes you should be aware of.
Luckily, there have been negative and beneficial changes to selling property in France due to Brexit. Let's break them down for you.
Consequences of Brexit on selling Property in France
There are two significant consequences of Brexit on selling property in France, but these only apply to second properties. So, if your primary residence is in France, you need not worry. But if you plan on selling a holiday home or second property in France, you need to be aware of this.
Due to the fact that you are no longer an EU tax resident, you will need to have an appointed tax representative to be able to sell your property. This is usually at your own cost. However, it is only applicable if the property is worth more than €?150,000 and you have owned it for less than 30 years.
Benefits of Brexit on Selling Property in France
However, it is not all doom and gloom here, as we are happy to report that Brexit has left us with at least some benefits.
Since Brexit, second homeowners in France will benefit from a reduced social charges rate. This applies to rental income, capital gains and investment income. Initially, the social charges are taxed at 17.20%, but this has now been replaced with a 7.5% social levy.
The only condition is that the tax payer already contributes to another European country's social security system.
How to Sell Property in France
If you are considering selling your French property, we can help you. Here are several steps you can take to prepare yourself to sell.
Work Out the CGT
As we have mentioned, you may be at risk of paying higher capital gains tax when selling your second home in France. So, consider if selling the property aligns with the outcome you are hoping to achieve. If the purpose of the sale is to make as much profit as possible, consider if now is the best time to do so.
It is worth noting currency exchange rates within your sale, as although you may notice a loss in local currency, this may translate to a gain in sterling.
Appoint a Tax Representative
If your property is worth more than €?150,000 and you have owned it for less than 30 years, you need to appoint a tax representative. This specialist will ensure that you pay the appropriate tax amount during the sale.
Usually, they will charge between 0.4% and 1% of the property value.
Choose an Experienced Lawyer
To ensure you are making the best moves possible in the sale of your French property, you must seek the help of an experienced France tax lawyer. It is their duty to make the process as easy as possible for you and keep each step running smoothly with the correct forms and procedures in place, especially with language and cultural barriers.
This is where we can assist you at France Tax Law. We are experts in all things French law and are qualified notaries with the skills and experience to assist you in selling your property.
Contact Us to Find Out More
Ready to take the first step in selling your French property? Our expert team are on hand to help you, so contact us today to discuss your plans and requirements. We will be happy to offer our advice and expertise to assist you.
Alternatively, learn more about how we can help you with French property law and buying property abroad.