French Leaseback - Tax & Resale

[terrencemc]

Hi

I have two questions regarding French Leaseback

1. If your annual rental income is 4000 euro and your mortgage repayments are 6000 euro per annum and you pay French tax on your rental income at the appropriate rate:

a. Are you liable for Irish tax? If so, how much?
b. Is your net loss of 2000 eligible for tax rebate when you do your
personal tax returns? Is so, how much?

2. Has anyone on this forum either resold a leasback or renegotiated a new lease, if so how did they go about it.

I look forward to your replies.

Terrence

 

[evenstar]

French tax info-hope this helps a wee bit.

Taxe fonciere (property tax) is similar to rates and is paid whether you live in the property or not and is paid by the owner. It is split between tax for the building and tax for the land and varies greatly depending on the location. New property is exempt from property tax for the first two years

Taxe habitation (residential tax), is a tax payable by the person living in a property on January 01 each year whether they are the owner or tenant. Therefore if you own and live in a property, you pay for both fonciere and residential tax.

Tax assimilee (sundry tax) is a tax only paid in certain areas, particularly popular holiday resorts, as the local authorities must spend more on amenities and upkeep.

Taxe professionelle (professional tax) is paid if you want to use your property to work from home.

Import sur la fortune (wealth tax): if you assets are worth more than €730,000 on the January 01 and you are not a resident, you pay wealth tax only on your assets in France. If you are a resident, then it’s calculated on your worldwide wealth including all residences. The rates vary from 0.55-1.8%

CAPITAL GAINS TAX

If you are an EU resident, but not a French resident 16.5%
Non EU resident 33.33%
Double taxation agreement with a number of EU countries
Income tax is at 25%

Make sure your accountant is good!