France to tighten taper relief exemption next year

Posted 23/12/2011

A change to capital gains tax in France that is set to come into effect next year could have an impact on those considering buying homes in the European nation.Taper exemption rules currently in operation in France are being tightened from February 1st 2012, according to Justin Postlethwaite, editor of information resource FrenchEntree.com.He stated the relief is currently a ten per cent reduction in the calculated gain for each year a person has owned a home in France after the fifth year.Mr Postlethwaite explained that in effect, after 15 years of owning a property in the European nation, this means the exemption is 100 per cent, but in the future this will no longer happen until 30 years of ownership.The specialist recently reminded those considering a property purchase in France that they will not be given a completion date for the purchase on the contract as this is flexible in French law.