Author: Matthew Cameron
Date: 20 June 2011

The French president, Nicolas Sarkozy, has just announced that the French government is dropping the proposed new tax charge that was going to add an extra tax to people who own second homes in France. This is good news for such second homeowners, who could well have seen something like a twenty per cent increase in their annual taxe foncière bill. It may well be that this reflects a realisation that such a law would inevitably fall foul of EU legislation, or that it may not have been a vote winner among French people living overseas.
 
There may however be other consequences. The original proposal for the tax increase was apparently an effort to recoup some of the reduction in tax revenue following a relaxation of wealth tax. It is possible that other taxes may now be affected. For example, capital gains tax allowances may be reduced on undeveloped land, although this is not likely to be of broad concern among British owners of French property. We will continue to keep you updated of any relevant future changes.

Click here to read our original press release.

For further information, please contact Matthew Cameron