British holiday homeowners in France to be hit by new tax

[Anonymous]

We’ve been living with this tax in Spain for as long as I can remember:
http://www.telegraph.co.uk/property/propertyinfrance/8529230/British-holiday-homeowners-in-France-to-be-hit-by-new-tax.html

[logan]

Taxation in France is already very severe and collected with rigorous efficiency. With 8 million civil servants to keep you can understand why.
This particular tax has long been promised. British people have avoided the law in France for years by renting their French holiday homes in the UK in Sterling and failing to declare it both in the UK and France.
Income generated from investment as a resident in France is taxed at very high levels. 🙁 This new tax can always be avoided by becoming French residents and submitting themselves to French tax law on their worldwide income.
They will discover the new tax is a cheaper option.
It was inevitable this tax would happen, it’s got nothing to do with Sarkozy’s election campaign next year.

[angie]

Mark, does this apply to Brits who reside all year, I suppose not if they are resident for tax purposes, but some obviously just live there as non residents? 🙄

Also, If someone was resident there and had Gites, would this new tax apply to the Gites?

[Anonymous]

No, and I dont’ think so.

[logan]

Correct Mark. It’s a non resident tax.

[Anonymous]

There are many creative taxes in France. In this aspect there are two taxes that exist at the moment “Tax habitacion ” & Tax Foncier.

a)Tax Habitation is due from the person who lives at the property on the 1st of each year. So if you are renting your property the tenant will pay this.

b) Tax Foncier is paid by all owners of the property.

So the owner who does not live in the property round the year end up paying the two Taxes (a) & (b) as he is deamed to be a resident in the property on the 1st of each year

This is a third tax being introduced. Easy to do as no political fall out. As the majority of French are not very fond of non French. The the French are happy to extract more out of them to keep the work shy French in their jobs producing nothing.

[logan]

@shakeel wrote:

There are many creative taxes in France. In this aspect there are two taxes that exist at the moment “Tax habitacion ” & Tax Foncier.

a)Tax Habitation is due from the person who lives at the property on the 1st of each year. So if you are renting your property the tenant will pay this.

b) Tax Foncier is paid by all owners of the property.

So the owner who does not live in the property round the year end up paying the two Taxes (a) & (b) as he is deamed to be a resident in the property on the 1st of each year

This is a third tax being introduced. Easy to do as no political fall out. As the majority of French are not very fond of non French. The the French are happy to extract more out of them to keep the work shy French in their jobs producing nothing.

Your post Shakeel is true except the bit about ‘work shy French’. There is a deferential between French workers employed by the state and those in the private sector.
Civil servants in France (functionaires) are as a general rule lazy, work shy and morose. In the private sector workers are generally hard working, helpful and efficient.

[Author]

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