Posts Tagged ‘Compromis de Vente’

French Mortgages won’t lead to Capital Gains Tax on French homes

Thursday, May 27th, 2010

With Capital Gains Tax in the news in the UK, here’s the French position.

No capital gains tax is payable to the French government on the sale of a principal residence by a French resident (and taxpayer) whatever their nationality. You just have to pay the Notaire’s fees and repay your French mortgage.

For second homes CGT is levied at 16% for EU residents with French residents paying an extra 11% social charges, while non-EU residents are charged 33%.  The Notaire will collect the tax at the point of sale.

However, capital gains tax is reduced progressively by 10% per year after 5 years’ ownership, so there is no tax to pay after 15 years. The cost of improvements carried out by French-registered contractors can be deducted from the capital gain between buying and selling prices. French residents also pay CGT on the sale of a second home, wherever it is situated. They too are exempt from capital gains tax on the sale of a second home after 15 years ownership.

If you are thinking of relocating to France, where Capital Gains are treated differently, Best French Mortgage can organise a mortgage for your French home at the best rates from the best French banks.

Best French Mortgage are the leading online French mortgage broker:

Click here to apply for your French Mortgage.

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Ascension Bank Holiday

Wednesday, May 12th, 2010

Thursday 13 May is Ascension Day and in France this is marked by a Bank Holiday. Because the French Bank Holiday falls on a Thursday, many people will make it a long weekend by taking Friday off as well. In France this custom is common, and it’s called “faire le pont” literally “make a bridge”. The previous two public holidays both fell on a Saturday and in France they are forfeit, not rolled over.

For house hunters this may mean you cannot get a viewing appointment until next week. Expect to find a sign in the estate agent’s window announcing “Fermeture exceptionnel”. You can still research the French mortgage market online. Learn more about French mortgages and how a good mortgage broker can help you from our website, Best French Mortgage.

The online portal for Best French Mortgage will be open throughout the weekend, of course, so you will still be able to apply for your French mortgage. We promise to find you the best French mortgage from top tier French banks and mortgage providers. We don’t charge clients for our mortgage broking services.

Best French Mortgage are the leading online French mortgage broker:

Click here to apply for your French Mortgage.

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Compromis de Vente

Thursday, March 18th, 2010

The Compromis de Vente is a legally binding bill of sale. Once both the seller and buyer have signed the Compromis, and the buyer has had 7 days reflection, there’s no backing out for either party.  A Compromis may be drawn up by an registered Estate Agent or a Notaire.

The Compromis must describe the property fully including not just the size and location of the property and outbuildings, but also any fixtures and fittings included in the sale. The price is also fixed at this point.

There are 3 types of conditions which may be included in the Compromis de Vente: Conditions générales, Conditions particulières and Conditions suspensives.

Conditions générales mean for example that the buyer takes possession on the day of completion and becomes liable for property taxes and that the seller doesn’t sell off part of the property before then.

Conditions particulières would be written into the contract if the seller agreed, for example, to complete repairs before the sale date. If the condition is not fulfilled by the sale date, you may not withdraw from the purchase but you can ask the Notaire to retain some of the purchase price from the seller until the matter is put right.

Conditions suspensives are clauses which, if not realised, allow the purchaser to withdraw. If you are looking to buy with a French mortgage, you must have a condition suspensive in the Compromis de Vente which allows you to withdraw from the purchase if you are refused a mortgage.

You may be offered a promesse de vente (promesse unilatérale de vente) by a developer, which is an option to buy a property granted to the buyer by the owner. A promesse de vente is at a specified price and good for a specific duration.

And, for commercial premises there is a  promesse d’achat where the buyer commits to buy a property in the case where the owner wants to sell it.

As soon as you sign the Compromis de Vente or equivalent document, you must start to look for a mortgage if you need one. Best French Mortgage will get the ball rolling as soon as we hear from you.

Best French Mortgage are the leading online French mortgage broker:

Click here to apply for your French Mortgage.

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