Market slow-down as French double capital gains timeline?

The buoyant French holiday home market could face “a slow-down” in the New Year if “vendors take their stock off the market” as the government doubles the scope of its capital gains tax (CGT) regime from February 2012 onwards say local specialists.

At present, any overseas property buyer investing in French property system can sell outright after 15 years and pay no CGT. The new rules double the time period and owners will have to wait for 30 years before being able to sell without falling liable for CGT.

Speaking exclusively to OPP, Graham Rowan, director of French international home specialists, the Leaseback Team, said “the French government is desperate to raise more tax revenues, and they are approaching the (overseas property) market on the simple basis that the sooner you sell, the more tax you pay.”

Source: OPP