French Capital Gains tax 2011

French Capital Gains tax 2011

A new increased rate of 19% has been introduced for 2011 for French Capital Gains tax. This rate applies to non-French residents of EU who dispose of French Property, and is applicable for completions as of 1 January 2011. French tax residents pay an additional social tax of 12.3% on top of the increased French Capital Gains tax rate of 19%.

As was the case prior to 2011, French property is exempt from French Capital Gains tax after 15 years of ownership, although UK tax residents would need to declare any gain in the UK and may still face UK capital gains tax.

French Capital gains tax is payable in full during the first five years of ownership, and then each full year of ownership after the fifth year attracts a reduction of 10% per year (resulting in a full exemption after 15 years). Like in the UK, there is a primary property exemption for French Capital Gains tax, although as the French Property property must be your primary residence, this exemption is generally only available to French residents.

For any queries, please contact John Kitching on info@frenchlawconsultancy.com John is a qualified Solicitor specialised in French law and estates. For further information on French law, please visit the French Law Consultancy website www.frenchlawconsultancy.com