The new capital gain tax law will be in effect starting February first, 2012.
Today, second homes in France are subject to a capital gain tax during 15 years of ownership.
After 5 year, there is a 10 % deduction each year to reach total exemption after 15 years of ownership.
After February 1st, 2012, capital gain tax on second homes in France will be due during 30 years of ownership with the following deduction schedule :
- 2% deduction between the 6 and 17 year
- 4% deduction between the 18 and 24 year
- 8% deduction between the 25 and 30 year
Total exemption thereafter.
The new tax law will be applicable for any new compromis or any final agreement signed after January 30th.