Tag Archives: tax

French stamp duty increased by 0.71%

French stamp duty increase March 2014Buying a property in France? Then it’s worth being aware that French stamp duty, or taxe de publicité foncière, increased by almost 1% on 1 March. Find out more about the change and which regions have opted out.

The increase of 0.71% is applied to the sale price of all completed purchases (actes authentiques) that take place from 1 March 2014. The rise only affects properties built at least five years ago (a lower rate applies to newer properties, which hasn’t been changed).

A temporary rise?

The extra money generated from the increase will be going to local councils, forming an important part of their budgets and compensating for reduced government grants.

France: changes to Chambre d’Hôte regulations

Regulations for B&Bs in FranceRunning a B&B in France? The French government has recently redefined what they class as a chambre d’hôte (bed and breakfast) under the Chambre d’Hôte regulations. Depending on how you run your B&B, it may mean that you need to apply for hotel status.

What is a ‘chambre d’hôte’?

You need to comply with the regulations if your lodging:

  • Is a B&B in France, i.e. providing overnight accommodation plus breakfast
  • Is in your own home, i.e. the house you live in – your permanent residence (this is the recent change)
  • Has no more than five bedrooms for 15 people

French stamp duty rise for January 2014

Property Stamp Duty UK

Planning on buying a property in France? If you can, buy before the end of this year to avoid the stamp duty rise of almost 15%.

This summer the French government announced that on 1 January 2014 the stamp duty rate (droits de mutation) will increase from the current 5.09% to 5.80%. The increase is said to ‘plug a financial hole that is appearing in the accounts of many departmental councils’.

As an example, if you’re buying a €250,000 property in France on or after 1 January, you’ll pay an extra €1,792 in stamp duty (€14,517 rather than €12,752).

French income tax made easier

French income tax19 June, 2013

It’s always good news when tax is made a bit simpler. And that’s just what’s happened in France as the income tax (impôt sur les revenus) and social charges tax (prélèvements sociaux) are now being merged into one annual payment.

Although the combination of payments sadly won’t make your final tax bill any smaller, it will at least give a better upfront idea of how much you owe all in one go. Plus, there’s no more waiting for that dreaded second letter.

For more details on payment methods and timings, take a look at:
http://www.french-property.com/news/tax_france/collection_impot_social_charges/

Income tax to hit Andorra: a sign of the times?

Andorra4 June, 2013

Has the Euro crisis heralded the end of the tax haven? The head of Andorra’s government, Antoni Marti, has announced he’ll instate income tax to bring Europe’s sixth smallest nation into line with international tax standards. This will be the first time that such a tax has applied to personal income in Andorra.

The new bill has been proposed in the wake of finance ministers calling for stricter measures against tax evasion, which is said to cost the EU £850 billion a year.

Read the full story here: http://www.bbc.co.uk/news/business-22745895

Expats urged to seek advice on new tax laws before deciding to leave Spain

Capture17 May, 2013

New financial reporting requirements in Spain have prompted many expat residents to think about leaving the country. The new tax laws require anyone who resides in Spain for more than six months of the year and owns overseas assets amounting to more than 50,000 euros to declare them.

Although this will certainly ring true for many expats, those affected should seek financial advice before deciding to leave as there may be ways of reducing the impact of the new laws.

Read the full story here: www.telegraph.co.uk

Economists propose ‘wealth tax’ for the Eurozone

25 April, 2013
tax_2A group of leading German economists have proposed a tax on property and other assets in struggling Eurozone countries in a bid to fund future bailouts. If this goes ahead, holiday home owners could be affected.

It’s been suggested that home owners in the weaker economies should be called upon to pay a ‘wealth tax’ to contribute to the costs of any bail-outs. Angela Merkel’s advisors say that Germany has been under great strain to help with bail-outs and that the responsibility to stabilise the Eurozone should be shared among richer households in other countries too.

Council Tax changes in England, April 2013

7 March, 2013

counciltax

Second homes currently attract a council tax discount of between 10% and 50% at the discretion of the county council. Formally speaking, as of 1 April 2013 both the Council Tax (Exempt Dwelling) Order 1992 and the Local Government Finance Act 1992 are being revised to remove the minimum 10% discount.

In layman’s terms, local authorities will have the right to completely remove the council tax discount for furnished second homes.

Some councils, such as Cornwall, have already stated their commitment to removing the discount, but it’s worth checking with your local authority to see how this may affect you.