Capital Gains Tax

Quite simple really.

If the property is your primary residence, you pay no CGT at sale regardless of your nationality.

If the property is a secondary residence, investment, rental - then you pay CGT on the PROFIT regardless of your nationality.

Lets say you bought for 1,000,000 € (plus notary fees - say 70,000 €) and sold for 1,300,000 € then you pay CGT on 230,000 € PROFIT.

If you are an EU National, this would be 16% ( 36,800 € in this instance)

If you are French - 26% (59,800 €)

Anyone else (or a business or company) then you pay 33% on the profit ( 75,900 €)

HOWEVER - after 5 years ownership, the CGT starts to decrease, and is 0% after 15 years - i.e. you've had a secondary residence for 15 years or more, and now want to sell - you pay no CGT.

You might choose to decrease your notary fees (roughly 7%) when you bought by having furnishings, kitchens etc listed and paid separately (thus not included in the notaires fees) - however, when you sell your profit margin will be higher (unless you repeat the process of this separate 'inventory') and thus paying more CGT.

For the sale, the notaire will automatically appoint a CGT specialist, who roughly charge 0.65% of the sale price. It is up to you to provide for them any legal work or justification of why they should diminish your profit margin from any advancements (and thus costs) associated with your property.

Even if you sell for a loss, the specialist will charge you.

For more info, please feel free to contact us at info@lipsproperty.com our visit our web for useful information

What Price A Seaview?

Okay - so you want to sell your property, or you've found the perfect acquisition - what's the real value?

An agents real task is bridging this gap between buyer and seller - no seller is going to under price their property, and no buyer is going to offer more than asked....

As a general rule on the Riviera - across the board - calculate on average 5,000 € per m².

But that's the easy part - what price for a seaview or terrace? Garage or pool?

In general, a constructor will count half the size of a terrace as 'liveable' - thus the additional price of a 20 m² terrace would be 50,000 € (1/2 x 20 m² x 5,000 €/m²).

A garage can be anywhere from 15,000 - 45,000 € depending on its suburb or parking density.

Other factors that need to be calculated include :

• condition - often you can knock off a large sum arguing that it needs a new kitchen
  
• aspect - morning or afternoon sun
  
• ceiling height - belle epoque, mezzanines
  
• flooring - parquet, tiles, carpet
  
• monthly charges and services - and whats included or voted on recently
  
• taxes - habitation and fonciere taxes vary from city and region
  
• view - sea, garden, autoroute?
  
• accessibility - elevator, local transportation or shops
• room sizes - can walls be knocked out to make make larger
• COS residual - can it be expanded

Often it is best to get a third opinion - even from a friend - as what you may have fallen in love with looks like a workers nightmare to unbiased eyes.

For more info, please feel free to contact us at info@lipsproperty.com our visit our web for useful information