The Overseas Guides Company has recently seen a near 200% increase in interest for their guides that cover France. The company expects that the growth in interest in France is because of continuing economic problems in other popular destinations such as Greece, Spain, and Italy.
France however, remains as one of the strongest economies in the Eurozone. In the third quarter of this year the French economy exceeded its growth expectations and this is led to many people from the UK viewing it as a stable place in which to invest in holiday property.
The editor of the guide has said, “President Sarkozy has recently announced that there will be a relief on tax for the wealthy in France and this will encourage wealthy people from the UK to move to the region.
The wealth tax in France will now only be available to people with a wealth of over €1.3 million with the highest bracket being only 0.5% which comes in when your wealth exceeds €3 million. This means that as a general rule most people will be better off. In Spain the opposite has happened and it is becoming a less attractive region for the wealthy to move to.”
It is also expected that the rules the capital gains tax will change in France and this will benefit people who have invested in property in the past. If they sell within the next five years the amount of capital gains tax they pay will be less. If people do not choose to sell within this period they will be liable to pay more over the next five years but it means that inflation can be offset against tax.