Britons With Holiday Homes In France Face £700-A-Year Tax As Sarkozy Looks To Raise Cash

[The Masked Tulip]

Britons with holiday homes in France face £700-a-year tax as Sarkozy looks to raise cash

Read more: http://www.dailymail.co.uk/news/article-1390000/Britons-holiday-homes-France-face-tax-Sarkozy-looks-raise-cash.html#ixzz1NDkR4v64

The move has been criticised by people with holiday retreats and housing experts who said that such a tax would harm the economy.

Thousands of Britons already facing steep bills at home may have to sell the overseas properties if the charge is introduced.

A number of organisations are reportedly planning to challenge the tax on a legal basis as it may break European laws by discriminating against foreign home owners.

Figures suggest that there are some 360,000 second home owners in France. Around 200,000 are believed to be British.

[pyracantha]

Britons with holiday homes in France face £700-a-year tax as Sarkozy looks to raise cash

Read more: http://www.dailymail.co.uk/news/article-1390000/Britons-holiday-homes-France-face-tax-Sarkozy-looks-raise-cash.html#ixzz1NDkR4v64

Seems fair enough to me. So there are 360,000 properties not available to French "hard working families". Holiday homes create ghost towns as locals can't afford to buy.

[OnlyMe]

Seems fair enough to me. So there are 360,000 properties not available to French "hard working families". Holiday homes create ghost towns as locals can't afford to buy.

Probably quite the opposite where most of these holiday homes are located - there is building land availability, if there is demand then houses get built. You don't see the desertification of rural areas and loss of the last shops like you do here, in fact there are an amazing number of small shops and food outlets that have only been helped with the additional tourism created by turning a lot of derelict propoerty in to at least part actively used propoerty over the years. That is not to say that prices have not gone up - that is largely down to monetary policy forcing low rates and higher debt into all economies around the world.

[Frank Hovis]

I was disappointed how small the amount was when they put it like that.

Still, every little helps and it may mean it comes in here as well.

[@contradevian]

Seems fair enough to me. So there are 360,000 properties not available to French "hard working families". Holiday homes create ghost towns as locals can't afford to buy.

They are not usually where French "Hard working families" want to live. Usually rural properties and the French prefer to live in cities where the jobs are.

[Frank Hovis]

They are not usually where French "Hard working families" want to live. Usually rural properties and the French prefer to live in cities where the jobs are.

If you were saying that about the UK you would sound like a ramper.

[@contradevian]

If you were saying that about the UK you would sound like a ramper.

Many french villages would have died completely without some foreign input, though many have been bought as main homes, not second homes. Having said that my house in the Charente was sold to a British couple who wanted a French holiday home. No French buyers came round to view at all!

[thod]

Most of the villages around where I live have the same plan. There is the old village full of stone cottages mostly second homes. Then there is the other half of the village, modern homes where the locals live. The French want to live in something new. There is not the land pressure here nor the planning regulations you have in the UK. Many of the villages will offer plots almost free in an effort to attract people. The villages are dieing and mostly consist of old people. There are even plenty of ruins for those that are into DIY. The paper has local firms offering to build you an off-the-shelf small house, on your free plot, starting around 60k.

The second homes are mostly owned by other French who live in Paris and such. The legislation does not effect them because they are French taxpayers. In fact a Frenchman can go work abroad for a few years and still not be effected. This is where the discrimination case comes in, it almost exclusively hits foreigners. Taxes that apply to everyone, but in reality only hit one group are discriminatory. For example, a turban tax would only hit Sikhs, a tampon tax would only hit women.

[interestrateripoff]

This could become popular, when the Turkish economy implodes will they also decide to tax the holiday home owners?

[OnlyMe]

Most of the villages around where I live have the same plan. There is the old village full of stone cottages mostly second homes. Then there is the other half of the village, modern homes where the locals live. The French want to live in something new. There is not the land pressure here nor the planning regulations you have in the UK. Many of the villages will offer plots almost free in an effort to attract people. The villages are dieing and mostly consist of old people. There are even plenty of ruins for those that are into DIY. The paper has local firms offering to build you an off-the-shelf small house, on your free plot, starting around 60k.

The second homes are mostly owned by other French who live in Paris and such. The legislation does not effect them because they are French taxpayers. In fact a Frenchman can go work abroad for a few years and still not be effected. This is where the discrimination case comes in, it almost exclusively hits foreigners. Taxes that apply to everyone, but in reality only hit one group are discriminatory. For example, a turban tax would only hit Sikhs, a tampon tax would only hit women.

The only exception seems to be the centre of some of the larger villiages/towns - if designated a preferred "local" residence/area you'll have to get your purchase past the mayor - which may not be that easy!

Strikes me if the Fench don;t have a handle on the cut on rental income they do not have much of an idea about how much extra money is cocming into these areas one way or another either by direct tourism spend, money spent down the local bricolage or through the hands of local services / builders / shops. They could find themselves in a siutation where the cost for holidays rise and their overall tax take an dincome fall.

[campervanman]

Most of the villages around where I live have the same plan. There is the old village full of stone cottages mostly second homes. Then there is the other half of the village, modern homes where the locals live. The French want to live in something new. There is not the land pressure here nor the planning regulations you have in the UK. Many of the villages will offer plots almost free in an effort to attract people. The villages are dieing and mostly consist of old people. There are even plenty of ruins for those that are into DIY. The paper has local firms offering to build you an off-the-shelf small house, on your free plot, starting around 60k.

The second homes are mostly owned by other French who live in Paris and such. The legislation does not effect them because they are French taxpayers. In fact a Frenchman can go work abroad for a few years and still not be effected. This is where the discrimination case comes in, it almost exclusively hits foreigners. Taxes that apply to everyone, but in reality only hit one group are discriminatory. For example, a turban tax would only hit Sikhs, a tampon tax would only hit women.

Where I live in SW France the local village now has around 20% UK and Dutch owners about half of whom are 'part timers' who have bought holiday homes with a view to moving over permanently later. I guess the hh tax and the way things are in the UK will only go to them making the permanent move sooner.

[The Knimbies who say No]

Most of the villages around where I live have the same plan. There is the old village full of stone cottages mostly second homes. Then there is the other half of the village, modern homes where the locals live. The French want to live in something new. There is not the land pressure here nor the planning regulations you have in the UK. Many of the villages will offer plots almost free in an effort to attract people. The villages are dieing and mostly consist of old people. There are even plenty of ruins for those that are into DIY. The paper has local firms offering to build you an off-the-shelf small house, on your free plot, starting around 60k.

The second homes are mostly owned by other French who live in Paris and such. The legislation does not effect them because they are French taxpayers. In fact a Frenchman can go work abroad for a few years and still not be effected. This is where the discrimination case comes in, it almost exclusively hits foreigners. Taxes that apply to everyone, but in reality only hit one group are discriminatory. For example, a turban tax would only hit Sikhs, a tampon tax would only hit women.

Tampons are subject to VAT. How wrong is that?

[The Knimbies who say No]

Where I live in SW France the local village now has around 20% UK and Dutch owners about half of whom are 'part timers' who have bought holiday homes with a view to moving over permanently later. I guess the hh tax and the way things are in the UK will only go to them making the permanent move sooner.

That's an interesting point, it's assumed the foreign home would be offloaded rather than the one in the country of origin.

[campervanman]

That's an interesting point, it's assumed the foreign home would be offloaded rather than the one in the country of origin.

Of course many are also 'waiting for the recovery' before they sell in the UK

[@contradevian]

Strikes me if the Fench don;t have a handle on the cut on rental income they do not have much of an idea about how much extra money is cocming into these areas one way or another either by direct tourism spend, money spent down the local bricolage or through the hands of local services / builders / shops. They could find themselves in a siutation where the cost for holidays rise and their overall tax take an dincome fall.

This I suspect that will result, and Taxe Foncière and Taxe rehabilitation are not exactly cheap, and in many villages it will be a case of collecting something rather than nothing at all, so its more of a gesture or populist politics that might play better where the Nationalists are strong in France

Then again although local taxes are not cheap, the French have more than a commitment to keeping to keeping their villages alive, which runs to more than keeping a rural post office open. Every village possessing an elected Mayor and so on.

[pyracantha]

Seems fair enough to me. So there are 360,000 properties not available to French "hard working families". Holiday homes create ghost towns as locals can't afford to buy.

Just in case anyone misunderstood, I put HWF in speech marks as I was using the term ironically.

[Surf's Up]

"It would see a typical holiday homeowner with a £350,000 house pay £700 a year."

That's how much a "typical" second home in France costs? Or is this just a modest tax on typical homes, but the Mail decides 700 quid is the point at which outrage starts to kick in and 350K has to be painted as typical?

[winkie]

Seems fair enough to me. So there are 360,000 properties not available to French "hard working families". Holiday homes create ghost towns as locals can't afford to buy.

What's to stop them renting out the UK home or just moving to France to spend their money?

[pyracantha]

What's to stop them renting out the UK home or just moving to France to spend their money?

Exactly. As far as I know, nobody has ever been forced into buying a holiday home.

[copydude]

Exactly. As far as I know, nobody has ever been forced into buying a holiday home.

I think this is an ill-researched article. 'Figures suggest' . . . well, you can find out exactly if you have a mind to.

Brits have been buying retirement - particularly in the Dordogne and Aquitaine - since the days of the 'silver haired rich', when pensions were worth something in the 1970s.

My parents bought a place for retirement in the Lot et Garonne. Actually this town would not exist if, first, Italians hadn't been given land to farm after the depopulation following war and, second, Brits hadn't arrived to keep local builders merchants, masons and what have you in employment.

I think this has more to do with those renting places as holiday properties and avoiding taxes. The 'Buy to let in France' mob.

Genuine retired couples are - and have been - suffering far more from the devaluation of the pound.

[Habeas Domus]

first of all heres a link from an actual newspaper:

http://www.telegraph.co.uk/property/propertyinfrance/8529347/British-holiday-homeowners-in-France-tax-QandA.html

This seems trivially easy to work around, put it up for rent at a peppercorn rent through a french agent, get a friend to book it for the whole year, bingo you are now exempt

[Frank Hovis]

Many french villages would have died completely without some foreign input, though many have been bought as main homes, not second homes. Having said that my house in the Charente was sold to a British couple who wanted a French holiday home. No French buyers came round to view at all!

Fair enough Sir John - can't argue with direct experience! Here they're priced out but maybe not the same in France.

[davidg]

This seems trivially easy to work around, put it up for rent at a peppercorn rent through a french agent, get a friend to book it for the whole year, bingo you are now exempt

The French revenue services will tax you based on the true market rental value of the property in that case.

[Realistbear]

http://www.dailymail.co.uk/news/article-2002503/Britons-French-holiday-homes-face-shock-new-tax-increase.html

Britons will have to pay a new tax on their French holiday homes in a shock move by President Sarkozy, it was announced today.

The tax only applies to foreigners with second homes that are unoccupied all year whether the property is owned personally, through a company or a trust.

Sarkozy is introducing it to help raise revenues and improve his poll ratings.

Foreigners? Oh well, he is on the right track and is obviously responding to the priced out. The French do revolution well and we are not so good at it preferring, instead, the rather more extreme recourse of Civil Wars.

[papag]

http://www.dailymail.co.uk/news/article-2002503/Britons-French-holiday-homes-face-shock-new-tax-increase.html

Britons will have to pay a new tax on their French holiday homes in a shock move by President Sarkozy, it was announced today.

The tax only applies to foreigners with second homes that are unoccupied all year whether the property is owned personally, through a company or a trust.

Sarkozy is introducing it to help raise revenues and improve his poll ratings.

Foreigners? Oh well, he is on the right track and is obviously responding to the priced out. The French do revolution well and we are not so good at it preferring, instead, the rather more extreme recourse of Civil Wars.

Are we not all Europeans ?or is that only when it suits France