Despite President Sarkozy’s significant increases in the 'abattement', or level at which a beneficiary has to pay inheritance tax in France, wealthy property owners should still be wary of inconsistencies between the French and British laws that govern inheritance tax.
A British family with two children and a French property worth over 700,000 Euros could still face a significant inheritance tax bill. Although the UK and France have a double taxation treaty which prevents the same tax being paid in both countries at the same time, it does not cover the same event happening at a different time. Therefore although a wife might inherit the whole of her dead husbands estate in England, French succession laws insist that each of her children would inherit a share of the property in France and have to pay inheritance tax on the difference between their abattement of 156,357 Euros and their share of the property.
One way to delay the inheritance tax is by setting up a Communaute universelle – a marriage property regime in France. The property is then owned jointly for the duration of the marriage, passed onto the surviving partner on the first death and then to the children on the second death. This avoids taxes being paid on the first death and any charges that are due, can be off set against IHT. Wealthy French property owners warned of tax inconsistencies
14th April 2009 11:38
Despite President Sarkozy’s significant increases in the 'abattement', or level at which a beneficiary has to pay inheritance tax in France, wealthy property owners should still be wary of inconsistencies between the French and British laws that govern inheritance tax.
A British family with two children and a French property worth over 700,000 Euros could still face a significant inheritance tax bill. Although the UK and France have a double taxation treaty which prevents the same tax being paid in both countries at the same time, it does not cover the same event happening at a different time. Therefore although a wife might inherit the whole of her dead husbands estate in England, French succession laws insist that each of her children would inherit a share of the property in France and have to pay inheritance tax on the difference between their abattement of 156,357 Euros and their share of the property.
One way to delay the inheritance tax is by setting up a Communaute universelle – a marriage property regime in France. The property is then owned jointly for the duration of the marriage, passed onto the surviving partner on the first death and then to the children on the second death. This avoids taxes being paid on the first death and any charges that are due, can be off set against IHT.
Despite President Sarkozy’s significant increases in the 'abattement', or level at which a beneficiary has to pay inheritance tax in France, wealthy property owners should still be wary of inconsistencies between the French and British laws that govern inheritance tax.
A British family with two children and a French property worth over 700,000 Euros could still face a significant inheritance tax bill. Although the UK and France have a double taxation treaty which prevents the same tax being paid in both countries at the same time, it does not cover the same event happening at a different time. Therefore although a wife might inherit the whole of her dead husbands estate in England, French succession laws insist that each of her children would inherit a share of the property in France and have to pay inheritance tax on the difference between their abattement of 156,357 Euros and their share of the property.
One way to delay the inheritance tax is by setting up a Communaute universelle – a marriage property regime in France. The property is then owned jointly for the duration of the marriage, passed onto the surviving partner on the first death and then to the children on the second death. This avoids taxes being paid on the first death and any charges that are due, can be off set against IHT. Other French news
French property market still a good investment - France's largest estate agent trade body, the FNAIM, recently reported that French property prices were still on the increase. Figures for the first quarter of 2008 showed a rise of 3.1%. With demand outstripping supply by an estimated 500,000 units, this trend is expected to continue. - 19th June 2008 16:57
French leasebacks offer more security than ever - The UK and American economies might be suffering from the doom and gloom of the credit crunch, but this hasn't affected Europe. For investors looking for a solid return, we can offer a number of enticing leaseback schemes in France. With the possibility of 100% financing available, leasebacks offer a secure long term investment with guaranteed rental returns and annual rental income increases. The properties are usually located in prime tourist locations and can therefore, also be enjoyed by friends and family. - 8th May 2008 15:01
French Mortgages - The Edison Ford team can help you today, letting you know whether you are eligible for a French mortgage, free of charge.
French leasebacks offer more security than ever - The UK and American economies might be suffering from the doom and gloom of the credit crunch, but this hasn't affected Europe. For investors looking for a solid return, we can offer a number of enticing leaseback schemes in France. With the possibility of 100% financing available, leasebacks offer a secure long term investment with guaranteed rental returns and annual rental income increases. The properties are usually located in prime tourist locations and can therefore, also be enjoyed by friends and family. - 8th May 2008 15:01
French Mortgages - The Edison Ford team can help you today, letting you know whether you are eligible for a French mortgage, free of charge.
Edison Ford is privileged to offer mortgages that are available for established property, off plan property and Leaseback property. - 7th January 2008 14:06
Smoke Free New Year - The New Year in France starts with an extension to the recent smoking ban, which now covers bars, cafes and hotels as well as prohibiting smoking in general public places. - 2nd January 2008 12:29
Time to invest in France! - When Nicolas Sarkozy became French president this year, he had more than just stimulation of the French property market on his agenda. - 16th November 2007 12:27
Cheap flights from the West Country! -
Marseillan, known as the last authentic fishing port on the French Mediterranean and widely dubbed as St.Tropez before Brigitte Bardot, is now only 2 hours from the UK's West Country! - 15th October 2007 11:18
French tax reforms -
Sarkozy’s new tax reforms are set to empower the French housing market, in a way never before seen in France. - 10th September 2007 09:23
Sarkozy announces plans to recall millionaires to France -
‘Bring back your money’, is the cry from French President Nicholas Sarkozy as he attempts to lure France’s rich citizens back to France by lowering taxes. - 2nd August 2007 23:31
House prices rise in France -
The property industry is flourishing in France according to many overseas investment companies. - 25th July 2007 20:30
