client information sheets

One of the ways a couple can hold a property in France is 'en indivision'.  When purchasing this way, the property is shared between the purchasers according to their financial contribution.  It is similar to some extent to a tenancy in common in English law.  Each of the purchasers owns a share of the house and the surviving co-owner will not automatically inherit the deceased co-owner’s share.

General procedures for purchasing an existing French property

Finding a property in France is the first stage of your process and can be done in various ways, either with an Estate Agent, a Notaire or you might already know the seller.

Introduction to French wealth tax – income tax – capital gains tax

France taxes wealth even if no transfer, death or disposal is involved.  This tax is frequently overlooked, or even not taken into consideration, by those who have invested in a second house in France, which has increased in value over the tax-free threshold.  Individuals that are not considered tax domiciled in France, are liable to pay the wealth tax if the net value of their French-based assets is above the € 760,000 threshold.  For those domiciled in France, their worldwide assets will have be taken into account.

Setting up a French ‘community fund’

A community fund called  “communauté universelle” which can be compared in some ways to a joint tenancy agreement is a form of marriage contract or nuptial agreement under French Law.  Under such a contract spouses can specify that all property acquired or received by a husband and wife during their marriage will be deemed to be communal and belong to a common fund, “la communauté”, administered jointly and with joint powers over these assets

Buying a property in France has certain longer-term consequences than the immediate enjoyment of the property.  Naturally people do not always think, or are advised, about the legal or the tax implications of holding French assets.