Investing
Clock ticking on France’s tax discount for second homeowners
Britons looking to sell a second home in France are being urged to ramp up their efforts to find a buyer, in order to benefit from a reduction in capital gains tax (CGT) that comes to an end in August.
As part of an initiative to kick-start France’s slow property market, last year President Hollande introduced a 25 per cent discount on the rate of CGT levied on second homes.
However, the scheme is only valid on transactions completed between 1 September 2013 and 31 August 2014.
Richard Way, editor at The Overseas Guides Company, said: “With a little over four months of the discount period left, vendors are reminded that time is running out to wrap up a sale, especially as much of France traditionally goes on holiday in July and August.”
Vendors that do make a sale and qualify for the reduced CGT are warned not to throw away that saving – which could be considerable in some cases – by not repatriating the proceeds of their sale in the most cost effective way.
Way said sending money back to the UK is best done through a currency exchange specialist, and not your bank.
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Currency specialists typically offer more competitive exchange rates and a more efficient service than banks, who do not view currency transfers as key to their customer service offering.
Read more on transferring money abroad HERE.