EFTA01454842.pdf

Taxation on holiday homes in France The typical buyer of a French Rental Income — Non•Residents Capital Gains Tax holiday home in France tends be looking for low French income tax on French rental earnings is If you are resident in the EEA then capital gains tax is risk, long term value payable by both residents and non-residents alike charged at a rate of 19%. Plus a further 15.5% social charges. However the French system of taper relief Most people will expect to reduces the amount on which capital gains tax and However France has double taxation agreements the social charge is levied own their properties for with many countries, so in most cases people are many years and are unlikely to be taxed twice on the same income unlikely to be looking for a - There is a complete exemption from capital gains tax quick gain after 22 years of ownership, with tapered relief from The basic rate is 20% of tax on the net rental income the 6th year of ownership. The method by which this for non-residents. Non-residents are not liable for a is achieved is a discount of 6% a year from the 6th further 15.5% social charges provided the property is year, and 4% in the final 22' year a furnished letting - There is complete exemption from the social charges after 30 years of ownership again with taper relief form the 6"' year of ownership 11 CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0113219 CONFIDENTIAL SDNY_GM_00259403 EFTA01454842