The French real estate among the least taxed in the world … for foreigners

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The French real estate among the least taxed in the world … for foreigners

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The French real estate among the least taxed in the world … for foreigners

According to an annual study conducted in 15 major cities around the world, Paris offers one of the most attractive tax regimes for foreign investors. However, the associated costs are among the highest.

An international study describing the French tax system as “more attractive”? What a great way to raise one or two eyebrows, a French player. It is true that this “tax Global Report” focuses exclusively on the situation of non-resident foreign investors. In this sense, the French capital is the third most advantageous among the 15 cities studied in terms of tax burden on a property worth $ 1 million (935,000 euros) and the fifth when a property is 10 million dollars (9.35 million euros). Only Monaco and Dubai are better (and Bombay and Shanghai for large properties). By combining transaction costs, taxation of rental income, wealth and taxes on capital gains, the study results in overall levels of taxes 7% to 12.8%. By comparison, this amount exceeds 30% in São Paulo, Brazil.

Francois Hollande and his “more moderate way”

A situation that allows the study authors write: “The anticipation of more benign tax has promoted a positive attitude among international investors eager to capitalize on real estate prices falling. The weaker euro and historically low interest rates have combined to fuel a rebound in sales in the most popular areas of Paris. At least two years of the presidential election, Francois Hollande seems to follow a more moderate path that could see resurface again in France in the destinations of choice for lifestyle and investment. With its relatively low acquisition costs and a diminishing reduction of capital gains tax, France appears more and more attractive. ”

Paris is however not the dream city in every way for investors. In the same study, it even appears as the most expensive destination for ancillary costs, no tax. In additionant acquisition costs (registration fees), housing management fees, agency fees for resale, etc. these expenses weigh 15.3% in the capital (for a purchase of a million dollars) while they are limited to 2.9% in Shanghai. The game is changing significantly for the most luxurious spa where Paris finds himself in 8th position. It was then the most expensive Geneva city before Berlin, Monaco and New York among others.

The source: “L’immobilier français parmi les moins taxés au monde… pour les étrangers” 23.11.2015