CAPITAL GAINS TAX REFORM: MODIFICATION OF TAPERED RELIEF RULES

The second Rectifying Finance Law for 2011 (Law of 19th September 2011) has reformed capital gains tax by modifying the rules applying to tapered relief.

Previously tapered relief applied after 5 years of property ownership at a rate of 10% of the net capital gain per annum leading to total exoneration after 15 years of ownership.

From 1st February 2012, the rates and time periods will be as follows:

-No relief for the first 5 years of ownership (unchanged)

-2% relief from the 6th to 17th year of ownership

-4% relief from the 17th to 24th year of ownership

-8% relief after the 24th year of ownership

After 15 years of ownership, the capital gain is exonerated for 20% of the amount

After 20 years of ownership, the capital gain is exonerated for 36% of the amount

After 25 years of ownership, the capital gain is exonerated for 60% of the amount

After 30 years of ownership, the capital gain is exonerated for 100% of the amount

30 years ownership is now necessary to be totally exonerated from capital gains tax

 

The above applies to secondary residences. The sale of the principal residence remains exonerated as under the previous rules.

For French residents, there has also been an increase in social security contributions which will lead to a total rate of taxation of 32.5% (currently 31.3%). The actual rate of CGT remains unchanged at 19%.

Our Picks
This 16th century château replete with historical elements and features is situated in the countryside under 5 minutes to a village with amenities. Approached via a courtyard, the dwelling, of approx. 564 m², comprises 8 bedrooms, including a fantastic round bedroom with domed roof in the watch tower, dining room, living room of 53 m² on the ground floor and a grand reception room with stone fireplace, mezzanine and exposed beams of 63 m² on the first floor, utility rooms, vaulted cellars and kitchen. In addition, on the second floor and the third floor of the tower there are a further 97 m² to be renovated to provide additional living space. The oldest part of the château dates from circa 1530. Historical elements and features include two stone spiral staircases, remarkable triangular red floor-tiles, stained glass windows and hagioscope. Former chapel of 72 m², 'pigeonnier' of 32 m². Central heating fired by wood pellets (boiler fed by a 7 t silo). Hot water production via solar panels. Swimming pool (10x5). Land consisting of garden, orchard, woods and pasture with mature trees of approx. 36,425 m². Additional land of 1.6 ha available to purchase separately. Dry moat protecting the watch tower. Outbuildings, totaling approx. 768 m², including former stables of some 208 m² on the ground with gallery above, workshop of 24 m² and barn of 180 m². Under 5 minutes to a village with good amenities.   
Ref: 2051-XML
EUR 1'155'000
 
Tucked away in the countryside, yet just over 5 minutes from two villages with all amenities, this stone farmhouse has been beautifully renovated and extended to offer comfortable living with all modern household conveniences. The dwelling of approx. 210 m² habitable surface area comprises 5 bedrooms and 4 bathrooms as well as a bright and spacious living room of 39 m², a good sized fully fitted kitchen of 27 m², both with access to terraces facing respectively East and South, and a study. A stunning walled in pool area with quality terrace surround and covered entertainment area has recently been completed. The property comes with approx. 5 acres of land, ideal for horses for instance and an outbuilding housing a workshop, utility room and woodshed. From all sides of the property, there are lovely views of the rolling hills.  
Ref: 2026-XML
EUR 495'000