I’ve been pleased to read that President Francois Hollande has announced a change in the capital gains tax system on second home sales in a bid to boost France’s property market
From 2014, the taper relief system is to be amended so that the required time of ownership before a property is exempt from CGT will come down from 30 years to 22 years.
Uncertainty over potential tax changes in the second half of 2012 led to a fall in demand for property in France, but this caused prices to drop and resulted in foreign buyers being enticed back. The CGT change should encourage even more buyers to take advantage of the favourable conditions open to them.
When it comes to a sound overseas property investment, it could be said that France provides all the fundamentals. Aside from lower property prices, borrowing costs have tumbled over recent months, and mortgage rates are at their lowest in more than 60 years. And, of course, there’s the enduring appeal of easy access from the UK, better weather, and good rental yields. France also represents relative stability amid the global downturn.
Unsurprisingly, therefore, it’s a good time to buy!