Since Brexit, many UK owners will need a fiscal tax representative when selling their French property if they are not resident in France. Here is the lowdown:
The five golden rules
- The need for a représentant fiscal is irrespective of any losses or gains made. Their role is to ensure that the correct amount of tax is paid.
- You can expect to pay between 0.4-1.0% of the selling price. There is an, albeit slight, silver lining in that the cost can be offset if you made any gains.
- The représentant fiscal will work for a separate company and can be appointed by the Notaire who is processing the sale. You can ask them to “shop around” and get the best quote possible but some Notaire’s may be reluctant to do this.
- If choosing the représentant fiscal yourself then be very careful and ensure they are fully accredited. You can see a full list of authorised companies at https://bofip.impots.gouv.fr/bofip/7560-PGP.html/identifiant%3DBOI-RFPI-PVINR-30-20-20201021
- There are some exemptions – the need for a représentant fiscal only comes into play on properties that sell for more than 150,000 euros. Similarly, you do not need a representative if you are exempt from Capital Gains Tax/Social Charges due to the length of ownership. Finally, if the property was formerly your principal residence but you sell it no later than 31st December of the year following you becoming a non-resident and the property has not been made available to a 3rd party (even free of charge).
As with all tax issues we strongly urge you to take professional advice. This is particularly the case here as these are such new rules following Brexit and there is a great deal of confusion and uncertainty over the process. The summary above is for guidance only and should not be considered financial advice.
If you are looking to buy/sell property in France, or need someone to manage your existing French property, then contact us at email@example.com