|
Capital
gains tax - recent change in the law
From
the first of January 2003, the law relating to capital gains incurred by
non-French residents upon the sale of real estate property has changed.
In the past, vendors could get around the obligation to appoint a
‘tax representative’ (répresentant fiscal).
However, it has now become obligatory for a tax representative to
be appointed for every sale of real estate property by an individual of a
value greater than 100,000 Euros. If
the property has been held for more than 22 years, no representative is
required. This representative
must be domiciled in France. The
purpose of the new change is to simplify the previous procedure, the
overall objective being to ensure that the fiscal authorities receive
payment of the tax.
If
selling property, you should bear in mind that extra costs will be
incurred if the new law applies to you and that it is best to give
consideration to the situation at an early stage of the conveyancing
process to avoid delays just before completion.
06/01/2003
- Legal Update
BACK TO NEWS
|
