French CGT cut to see hike in international mortgages

Mon, 17 Oct 2011
Those considering getting international mortgages to move to France could be interested in a change to how capital gains tax (CGT) is worked out in the country.

The French parliament has passed an amendment that means CGT will not be charged on the transaction for a second home if the seller does not own a principal residence in the country.

Chief executive of Leggett Immobilier Trevor Leggett said the decision is primarily aimed at French ex-pats, but it could also benefit UK owners of properties in the nation.

"Parliament has said that the new rule will come into force on February 1st 2012, to coincide with other property tax reforms," Mr Leggett remarked.

Because of this, the option of purchasing a home with an international mortgage may appeal to an increasing number of people.

This announcement comes after research by Post Office International Payments discovered 27 per cent of 18 to 34-year-olds in the UK would be willing to move abroad.

As well as this, 33 per cent said they have considered relocating in order to further their career.
 
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