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alteration
of the threshold for a fiscal representative upon sale
Upon
the sale of real property by a physical person resident outside of
France
, it is necessary to appoint a fiscal representative
for the payment and control of capital gains tax.
The threshold below which this was not necessary was previously
100,000 Euros. This has
altered following a fiscal instruction dated
19th February 2004
, of which the main points in this regard are as
follows:
-
The
new rules apply to all deeds of sale post 1st March 2004;
-
The
threshold is now 150,000 Euros (i.e. if the sale price is less or
equal to 150,000 Euros, it is not necessary for a physical person
seller of real property to appoint a fiscal representative);
-
In
the event of ownership ‘en indivision’, the threshold is to be
determined in accordance with the share that each co-owner detains;
-
For
a married couple, regardless of matrimonial regime, the threshold is
appreciated in relation to the total sale price (this also applies to
those subject to a PACS);
-
The
threshold is determined solely in relation to the price corresponding
to the real property or real property rights.
If the sale contains furniture, the value of this is not taken
into consideration to determine whether the sale is below or equal to
the threshold;
-
The
threshold is also calculated on the basis of the price stipulated in
the deed. Therefore, if the
price agreed in the deed includes the agency fee (e.g. agency fee
payable by the vendor rather than the purchaser), the amount of this
fee cannot be subtracted to determine the threshold.
26/08/2004
- Legal update
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