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Ask Miranda: Should we take an offer on our apartment now, or wait until 2013 for a reduced capital gains tax?
Is there any chance that if we stall on selling till 2013 that we can pay a reduced rate on capital gains tax? We have owned the property since 2008 and have spent a lot renovating it, but we do have an offer on the table now?
There is a measure up for debate before the end of this year which would reduce capital gains tax paid on second homes by 20%. If this is your primary residence there is no capital gains tax due. EU residents owe as much as 19% capital gains tax on the sale of property in France; non-EU residents have a starting rate of 33.3%; all second-home sellers pay 15.5% social charges as well. The 20% reduction is off the capital gains tax only; so for EU sellers, it rolls the starting rate to just over 30% from 34.5% – IF the measure passes. Contact us directly for referral to a tax specialist who can address the specifics of your case.