Legal column Is it still worth
buying a property in France? Yes, it is, says Deborah Vaysse
A
ccording to statistics, France is (and has been since 1990) the most
popular world destination for international tourists. And for good reason; France has a lot to off er to holidaymakers. It’s history has made it famous, along with its literature, fi ne arts, architecture, culture, and fi ne wine and gastronomy. France is also about
grandiose landscapes: the turquoise waters of the Côte d’Azur, the creeks of Marseille, the Gorges du Verdon, the snow-capped peaks of the French Alps, the volcanoes of Auvergne, the waterfalls of Jura, the gardens of Versailles, the Dune du Pilat, the cliff s of Etretat... the list goes on! Since Brexit I hear a lot of
“I can now only stay in France for a maximum of 90 days”, which is actually a wrong assumption. The rules state that UK nationals wishing to visit France for a stay of 90 days or less within a 180-day period do not need a visa. It is therefore possible to spend 90 days in France, then 90 days elsewhere and come back for 90 days, which means Brits can spend up to 180 days in France per year without a visa. UK nationals should also rest
assured that they will still be able to settle in France in 2023 as it is possible to stay for more than 90 days at a time if you apply for a visa. So Brexit should not prevent
UK nationals from buying their dream French property, which they may not be able to aff ord in the UK. Given the proximity to Britain and the ease of travelling between the two countries, and as the cost of living is slightly cheaper in France and the property market less tense, France is a dream
destination for second home owners or property investors. A villa in the south of France with a pool for less than £300,000!
PLAN AHEAD I always advise my clients to take a broad view of their project. Why are you buying a property abroad? Is it going to be your second home only, a rental investment, a hybrid project? Will you plan to resell the property, do you expect to make a gain or would you like your loved ones to inherit the property upon your death? You need to plan ahead to avoid unpleasant surprises – and also to benefi t from the advantages. If the aim is to invest in a
rental property, France as the top tourist destination in the world, is therefore a good bet. Location is a key factor: proximity to public transport, airports, amenities etc. The Alps, Côte d’Azur, Atlantic and north coast (Bordeaux, Biarritz, Mont-St-Michel), as well as Paris – all these areas are popular with investors because they are the most touristy regions of France. But as the most popular, they are also the most expensive: the theory of supply and demand. In contrast, there are cheap houses deep in the countryside that wouldn’t be suitable for seasonal rental but could still be considered for long-term rental which can ensure a stable income for the investor.
MANAGEABLE TAXES France has a reputation of being one of the most taxed countries in the world. It is true that on paper there are many compulsory levies: housing tax (taxe d’habitation), property
86 FRENCH PROPERTY NEWS: September/October 2023
“If only 21 miles separate
France and the UK, in terms of law they are a world apart”
tax (taxe foncière) for owners of second homes, income tax and social charges for those who rent, and even business property tax for those who off er furnished rentals. In reality though, many investors avoid a big tax bill by benefi ting from the many tax credits available. For investors who rent
their property furnished, or on a seasonal basis, there are diff erent tax regimes. One allows you to deduct the
charges and expenses incurred on the property from property income. Thus, if the amount of the charges is higher than the rental income, this situation generates a defi cit which can be deducted allowing the amount of the income tax to be reduced. The other regime allows investors who have already written off their property or who do not have many expenses to deduct, to deduct a fi xed abatement of
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