Taxes on Capital Gains in France Drastically Diminished by Almost 50%

    ANTIBES, FRANCE, March 04, 2015 /24-7PressRelease/ -- The social charge element of the real estate capital gains tax on secondary homes for non-French residents, which up-until-now was 15.5%, will be eliminated as the European Court of Justice has newly confirmed. The tax on capital gain therefore is 19% which is subject to discounts as the property ownership time is extended. After the first 5 years of ownership until the end of the 21st year, the capital gain is reduced by 6% per year so that after 21 years only 4% remains. This 4% is discounted at the end of the 22nd year. Therefore, after the 22nd year of ownership for non-French residents, no capital gains tax is due.

The managing director Philip Weiser, who established Carlton International over 20 years ago, commented: "With this drastic decrease of capital gains tax we are expecting the luxury real estate market in France to experience a significant growth during the upcoming period."

Furthermore, due to the current deflationary situation, as prices are falling in Germany, Italy and Spain, another incentive is provided for Swiss, American and British and Middle East purchasers to invest in real estate in France. Especially considering that the Euro has significantly depreciated relative to the US Dollar, British Pound and the Swiss Franc.

With property prices on the French Riviera currently being at a base level, the decrease in capital gains taxes, and the Euro hitting the lowest value against the dollar in 11 years, it is the optimal time to invest in real estate on the French Riviera.

As the European Court of Justice confirmed, the tax on capital gain in France will be diminished by nearly 50% with the removal of the 15.5% social charge element. Due to this decrease in taxes, low real-estate prices and the Euro's depreciation, it is recommended to invest in real estate in France.

Carlton International is a leading real estate agency on the French Riviera with over 30 years of expertise in the property market in the South of France. Carlton International is proud to offer a portfolio of over 500 properties for sale and luxury villas for rent in premium locations throughout the Cote D'Azur.

Please contact Sophie Chomette at [email protected] for further information.

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