Capital Gains Tax Threshold Reduced
Boost for Meribel property owners, CGT threshold down to 22 years
President Hollande has made a move to boost the property market in France with a reduction of the exemption from capital gains tax threshold down to 22 years from the previous 30 years.
Admitting that previous government had made a mistake in doubling the CGT (impôt sur les plus-values) threshold from 15 years to 30 years, which added an additional factor for the decline of property sales in France, Hollande is set to make this new ruling applicable from the 1st of September this year.
It is expected that the Meribel property market in will not see a noticeable rise in activity before the 1st of September.
The French government are also expected to make further changes to the finance bill in 2014 which should introduce allowances for second homes or property for rent, and possible penalties for building land owners who are not selling.
