Good News Bad News on French Property

Do you want to hear the good news first or the bad news?

Good News - President Sarkozy has introduced some new measures. So the good news - three significant changes. On IHT (Inheritance Tax): There is an exemption for husband and wife, and the exemption has increased to 150,000 euros for each child.

French Wealth Tax

On the dreaded Wealth Tax, there have been significant changes. First you are assessed on 70% of the value of your assets, and the starting asset value has increased to 760,000 euros. So no wealth tax would be due on properties up to 1 million euros. If you are domiciled in the UK, you will STILL be taxed on your worldwide assets.

French Mortgages

There is also tax relief on new mortgages from May 16 2007 - there are some conditions: you have to be domiciled in France, relief is on primary residences only and only applies to the first 5 years of the loan.

Health Charges in France

The Bad News: Health Charges - Britons who retire early to France have also been informed that they now face thousands of pounds in extra insurance premiums because the government has withdrawn the right to a 70% refund on health costs. The law change will hit those who have lived in France for more than two years without working and have not reached the UK retirement age.

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