Applicable taxes relating to property purchase

French taxation is quite complicated and this page does not set out to be a definitive statement on taxation nor is advice offered and each individual purchasing a property in France of deciding to live permanently in France should take specialist advice. We simply set out to draw attention to the applicable taxes relating to property purchase. If you would like more detail please ask as we have contacts with excellent advisers and can point you in the right direction.

Property purchase taxes at Aquitaine Vistas will be :-
Notary fee Circa 1%
Stamp duty and registration tax Circa 1%
New property TVA (VAT) 20% (reclaimable if in registered letting scheme)

Annual Taxes :-

Tax Habitation (Depending upon property value)
Tax fancier (Depending upon property value

Capital gain tax:-

The basic rate is 19% but if you are full time resident there is no CGT on your prime residence. If you purchase a property as a second home then there is “Tapered relief” over 22 years commencing in year 6 of ownership.
No allowance for first 5 years
Between 6 and 21 years 6% allowance per year
Final 22nd year of ownership 4% allowance

Social charges charged with capital gain tax also get Tapered relief vut over a 30 year period
No allowance in first 5 years
Between 6 and 21 years 1.65% per year
Year 22 of ownership 1.6%
between year 23 and 30 of ownership 9% relief per year