If you are a British citizen letting a second home or having sold a property in France since 1 January 2021, you may be entitled to a refund of French taxes paid.
Before Brexit, UK residents owning a second home in France paid a standard social levy at 7.5%. This levy is charged on the net rental income and capital gains of the second property and both French and non-French citizens pay it.
When the UK left the EU on 1 January 2021, France imposed a higher rate of 17.2% on British citizens owning French second homes. This significantly increased the tax burden for Brits and encouraged many to sell their properties.
However, this higher tax charge on British citizens has now been overturned and the social levy has reverted to the pre-Brexit position. More importantly, Brits who have already paid the increased tax can apply for a refund on wrongly paid taxes.
As a Brit owning a second home in France, it is certainly worth you investigating. However, as is always the case, there are certain conditions, so not everyone will be entitled to a refund.
If you need support with real estate taxes in France, our specialist Real Estate and Construction team at Moore Kingston Smith is happy to discuss your situation.
Additionally, if you have any real estate query, whether in the UK or any other country, our extensive worldwide network Moore Global can help, so please get in touch.