Premier French Property News

MARCH

Thurs 1st March Art’s Cool! Changing Seasons during February half term at The Old School, St Colomb de Lauzun
Drop the children off for a fun packed morning of creativity exploring nature!
From 10am until 1pm, option to stay for a picnic lunch until 2pm

10 Euros per session including specialist art materials

To book a place call: 0553947813
or email info@thelanguagelab.org

Fri 2nd March First Friday Folk Night at Mana's bar the Floc and Tea, Lauzun starting at 8.30pm.
Bring your friends, and any singers/musicians you happen to find, all welcome.
Looking forward to seeing you all there.

Sat 3rd March 3, 2012 until 2nd April The Association Nuances (Escassefort) and the Association Tous Artistes Enfants (Marmande) present the art exhibition “Du Temps Irréversible” in which are shown the paintings of the Dutch artist YuccaL.
The exhibition is in the Town Hall of Escassefort (47350). The vernissage is on March 3 at 6 P.M. at the Town Hall of Escassefort.

The exhibition can be seen through the entrance of the Mairie : every Monday and Friday morning, and every Tuesday, Wednessday and Thursday afternoon, and through the entrance of the Postal Office : every morning except Sunday morning.http://www.yuccal.com

Sat 3rd & 4th March Salon Antiques and Brocante Tonneins

Sat 10th March "Andrea Vicari Trio" Le OFF Hall de la salle des fêtes at Eymet, English jazz pianist 19h30.Tarif :
Plus d'infos : www.maquizart.com

Sun 11th March Brocante Marmande

Sun 11th March Morning Prayer Monteton 10h30
There are sometimes changes to these patterns, so please check the bulletins on the Chaplaincy website (www.churchinaquitaine.org. ) for up to date information

Tues 13th March Memorial Eucharist for Colin Pratt (re-scheduled) Monteton 10h30

Wed 14th March Quiz night at the Vieilles Pierres, Eymet- food will be beef or fish lasagne served with salad etc. followed by pudding. 7pm for diners, 8pm for those just quizzing. Book in advance please with me, Steve, at s.hedgehog@wanadoo.fr , please make sure you leave a contact number. Preference will be given to those eating.

Sat 17th March French language dictation  The Comité de jumelage Eymet / North-Hatley organizes this dictation with the collaboration of Eymet's council. Open to all, friendly and entertaining atmosphere. Snack at the end of the activity. Participation €3.
At the Library of Eymet, 2.30 pm.

Sun 18th March 24th Salon of Collectables Salle Anatole France, Bergerac 9-18.00

Sun18th March Prayer and Praise Monteton 10h30
There are sometimes changes to these patterns, so please check the bulletins on the Chaplaincy website (www.churchinaquitaine.org. ) for up to date information

Sat 24th March Carte blanche to Eric Séva Le OFF Hall de la salle des fêtes at Eymet,  saxophonist, Eric Séva at 7.30 pm at the Salle des fêtes hall in Eymet. Price €12.
Further information www.maquizart.com

Sun 25th March Holy Communion Monteton 10h30
There are sometimes changes to these patterns, so please check the bulletins on the Chaplaincy website (www.churchinaquitaine.org. ) for up to date information

Sat 31st March BOSS: Band of Sexy Swingers concert Salle des fêtes hall in Eymet
The greatests soul names, funk bands and hits of rythm'n'blues will be performed by the Flower of Bordeaux's artists: William Catwright (singing), Roger Biwandu (drums), Lionel Fortin(fingerboards), Marc Vullo (bass), Christophe Maroye (guitar), Thomas Lachaize (saxophone). Price €12, €5/child, Family pass €24., 8.30 pm.
Information and booking on 05.53.22.22.10

FRENCH TAX CHANGES 2012 provided by The Spectrum IFA Group

On 28th December 2011, the Constitutional Council approved both the Project de
Loi de Finances Rectificative 2011-IV and the Project de Loi de Finances 2012.
After publication of both texts in the Journal Officiel de la République Française on
29th December 2011, each of the bills was enacted into law on 30th December
2011.
Shown below is a summary of our understanding of the principle changes.
INCOME TAX
There will be a freeze on the income tax barème scale and so the 2011 scale
will continue to apply for 2012 and 2013.
There will be an “exceptional contribution” on high incomes, which will
continue to be applied until the budget deficit has been reduced. The
exceptional contribution will be collected with income tax and will be calculated
as follows:
           Contribution                                                                      Revenu Fiscal de Référence
           Rate
                               Revenu Fiscal de Référence
                                     Single, widowed,                                 Taxpayers subject to
                                       separated or                                            joint taxation
                                 divorced taxpayers

            3%                 > €250,000 and                                             > €500,000 and
                                  <= €500,000                                                  <= €1,000,000

            4%                 < €500,000                                                    > €1,000,000

However, if the revenu fiscal de reference for the tax year in question is
greater than or equal to 1½ times the average of the revenus fiscaux de
reference of the previous two tax years, there will be a mechanism to soften
the impact of the exceptional contribution.
The rate of the prélèvement forfaitaire libératoire, in respect of income from
capital earned from 1st January 2012, is increased from 19% to:
o 24% for bank interest; and
o 21% for dividends.
WEALTH TAX
Despite the fact that the upper house of the Senate, in which there is a
socialist majority, proposed that the entry level for wealth tax should be
reduced again to €800,000 and that the Bouclier Fiscal abolished
immediately, these proposals were defeated.
However, the current wealth tax bands will be frozen until the public deficit
is below 3% of GDP, which is anticipated to be by the end of 2013. Hence,
the bands will remain at:
o €1,300,000 to €2,999,999; and
o €3,000,000 and above
.
INHERITANCE TAX & GIFT TAX
There was also a proposal made to reduce the level of the inheritance and
gift allowances to those that were in force prior to the introduction of the
TEPA law. Fortunately, however, this was defeated.
Hence, the current allowances will be maintained until the public deficit is
below 3% of GDP.
CAPITAL GAINS TAX
The capital gains tax (CGT) rate remains at 19%.
CGT & property
As concerns the sale of a second property, unfortunately, there is no
change to the reformed CGT regime, which comes into effect on 1st
February 2012. Hence, under the new law, the taper relief will be as
follows:
o 2% per annum for each year of ownership beyond the 5th year;
o 4% for each year of ownership beyond the 17th year; and
o 8% per annum for each year of ownership beyond the 24th year.
Thus, the property will be free from capital gains after 30 years and as is
currently the case, the principal residence remains exempt from CGT (and
social contributions) - although there were discussions around the idea of
restricting the relief to a certain amount.
There are, however, two new cases of exemption from capital gains tax for
property sales. The first case concerns the sale of a property that is not the
seller’s principal residence:
o where it is the first sale of the property; and
o the seller has not been the owner of his/her principal residence
(either directly or through intermediaries) during the last four years;
and
o the proceeds of the property sold are invested, within twenty four
months of the sale date, in the acquisition or the construction of a
property, which will become the principal residence of the seller.
The above might be difficult to perceive and on the face of it, appears to be
aimed at French nationals who are living outside of France. Typically, the
person would be living in rented property or perhaps accommodation
provided by their employer and hence, would not own their principal
residence.
However, there is no reason why the reverse cannot apply. For example, a
foreign national coming to live in France, who rents a property for at least
four years and then sells a property (either in France or outside of France,
with the only condition that it is the first sale of the property) and invests
the proceeds into a principal residence.
The second case concerns the sale of the principal residence by an older
person, who leaves this to move into a nursing home (maison de retraite
médicalisée). Until now, the person would only be exempt from capital
gains tax providing that the former principal residence is sold within twelve
months of the date of entering the nursing home (i.e. under the standard
principal residence exemption rules). For the future, the person will be
exempt from capital gains tax for up to two years from the date of entering
the nursing home providing that:
o the proceeds of the sale are used to fund the nursing home costs;
and
o the person is not liable to wealth tax; and
o his/her revenue fiscal de reference is within a certain income
threshold (this is basically the same income threshold that applies
for exoneration from taxe foncièr and taxe d’habitation).
CGT & direct share holdings
The taper relief, applicable to the sale of direct share holdings that have
been owned for at least eight years, which was due to come into effect in
2012, has been replaced by a system of ‘tax deferral’.
The conditions of the new system are fairly detailed and only apply to
cases where the taxpayer (either alone or with members of his family) own
at least 10% of the shares in the business. In addition, the taxpayer is
required to re-invest the proceeds into a new business venture for at least
five years.
NEW RATE OF VAT
The existing lower rate of VAT of 5.5% is increased to 7%, except for
certain goods and services, for example, food, provision of school meals,
goods and services for the disabled, etc.
CORPORATION TAX
For 2012 and 2013, there will be an exceptional contribution of 5% of the
corporation tax due (before deduction of any tax credits and reductions),
from companies with a turnover exceeding €250 million.
FISCAL NICHES
The overall ceiling on fiscal niches is reduced by 10%, as follows:
o with effect from 1st January 2012 (i.e. in respect of income for
2011), the maximum overall limit for tax reductions, tax deductions
and tax credits is €18,000 plus 6% of revenue fiscal de reference
for 2011; and
o with effect from 1st January 2013 (i.e. in respect of income for
2012), the maximum overall limit for tax reductions / deductions /
credits will not be greater than €18,000 plus 4% of revenue fiscal
de reference for 2012.
In addition, there will be a cap of 15% on the total amount of any income
tax benefits.
As concerns investing in Small & Medium Enterprises - whether directly or
in specially designated funds - there is no change to the ISF-PME Scheme.
However as concerns IR-PME, the range of companies in which the
investment can be made, to obtain the income tax deductions, has been
limited.
The Scellier Scheme, which is not included in the overall ceiling for fiscal
niches, will be abolished at the end of 2012. In the meantime, the tax
deductions are as follows:
Year of
property
purchase
                                                       Properties classed as
                                                          “BBC” (bâtiments
                                                      basse consummation)
                                                                                                                            Properties classed
                                                                                                                                as “non-BBC”
2009 & 2010                                             25%                                                            25%
2011                                                           22%                                                            13%
2012                                                          14%                                                               8%
Donations to political parties are capped at €15,000 per annum for the
taxable household.
WHAT LIES AHEAD
It is clear from all of the above that “austerity” is still at the forefront of the French
government’s mind. What is also coming across strongly is the government’s
belief that these measures will bring the deficit under control – i.e. to within 3% of
GDP - by 2013.
2012 is a presidential election year and who knows whether or not the latest round
of changes will still be in place post-election or whether we will be faced with yet
more proposals for change. After having had a total of five budgets during 2011, it
would seem rather odd to have only one budget in 2012, particularly since there
are no proposals to further increase social contributions beyond the current rate of
13.5%!
However, discussions have already commenced on the idea of merging income
tax and social charges. Should this take place, this would be beneficial for those
people living principally on investment capital, but would be detrimental for those
living mainly on pension income, since pension income is not liable to social
contributions providing the recipient is a holder of a Certificate S1 (formerly E121).
On a final note, however, it may make you feel better to know that the President
and the politicians are also on a pay freeze until the country’s deficit is within 3%
of GDP!
5th January 2012
This outline is provided for information purposes only. It does not constitute advice
or a recommendation from The Spectrum IFA Group to take any particular action
to mitigate the effects of any potential changes in French tax legislation.
If you would like to discuss how these changes may affect you, please do
not hesitate to contact your local Spectrum IFA Group adviser.

You can contact Tony Delvalle at;

TONY DELVALLE
15 Rue De L'Engin
24500 Eymet, France
 
06 89 02 84 74
05 47 77 07 16
tony.delvalle@spectrum-ifa.com
 
Expatriate Financial Advice
 
The Spectrum Group
Independent Financial Advisers
French Registered Courtiers D'Assurance
www.spectrum-ifa.com  

 France named as top overseas country for British second home buyers by Ray Clancy on September 27, 2011   France offers full package for Brits France has overtaken Spain as the most popular country in the world for British people buying a second home abroad as two survey puts it in the top spot. France is the first choice for Brits buying abroad with Spain in second place and Portugal pipping Turkey to the post for third place, according to the latest overseas property ‘hot spots’ report compiled by Conti, the overseas mortgage specialist. The country is top of the list for the third year running, with a 39% share of mortgage enquiries received by the company this year. Spain is in second place with 31%, Portugal with 12% and Turkey on 11%. ‘There’s no doubt that France offers the full package for British buyers such as easy access, competitive prices, good rental returns and a stable property market. It also offers the most finance options and best available rates in Europe, and it’s this vital combination of factors which are making it so popular,’ said Clare Nessling, Conti’s operations director. ‘But Spain is definitely making a comeback, experiencing a particularly busy August. This could be due to the holiday season coming to a close, with trips to Spain this summer inspiring many of us to buy our own place in the sun,’ she added. Research from Savills International and Homeaway.co.uk also puts France in top position thanks to its perception of stability, limited house price decline and ease of access helping to make it a safe bet for UK buyers.Traditional prime property hotspots which attract wealthy, lifestyle buyers have been more resilient to the downturn. They include selected areas of southern France, the Alps, Portugal’s Algarve region, Italy and high-end locations in Spanish islands such as Mallorca. Cash rich, high spend buyers have maintained the robust property values achieved in top holiday home destinations today.  When choosing where to invest, UK buyers are most influenced by factors such as proximity to restaurants and bars, beaches, and being in easy reach of airports to reduce travel time. Most buyers have bought in destinations with extensive tourism infrastructure including cultural and historical attractions, golf courses, beaches and children’s entertainment. In France, Italy and Switzerland, buyers have typically opted for older, traditional style properties, while in the US and Cyprus, and also albeit to a lesser extent in Spain and Portugal, investors have tended to buy more modern properties. This reflects the volume of new build development in these locations. Holiday home owners like outdoor living, reflected in their preference for balconies and terraces with their properties. Buyers like the modern conveniences of their primary home to be available in their holiday homes. Internet connection is on the rise, particularly in long haul destinations. Air conditioning is in half of properties and 80% of home owners have access to either a private or shared swimming pool. More than half, 55%, of respondents said that income generated from letting their property partially covered costs, helping them to mitigate against current global economic conditions. Almost a third of respondents said that rental income completely covered their costs and 13% indicated it made them a comfortable profit. Over one in 20 holiday homes generated in excess of £30,000 per annum. ‘Clearly, holiday home owners and tourists share similar preferences for overseas properties. Strong underlying lifestyle demand for a property helps to support an investment case. It is these fundamentals that drive longer term capital appreciation and attract rental income,’ said Rebecca Gill, research analyst at Savills International and the author of the report.

Thanks to the work of eton digital, we have today launched some new changes to our website.The most noticable being the selected property photo's.These now appear in a large format, and can be selected one after another without going back to the original page.In addition, you can now get a quick currency conversion by using the  tab next to each property. This service is provided by our partners International Foreign Exchange. You can also find out more about their company and services by clicking on their logo at the top of the page.At the bottom of the page you can subscribe to our newsletter which will be send out  at the begining of each month.you can also now follow us on Facebook and Twitter.

France is to relax its rules on the admission of expat early retirees into the French health system.
The
change of policy has come about after pressure from the European
Commission, who consider France is in breach of EU regulations by
requiring early retirees to have five years residence before they can
obtain health cover.As a result the French Ministry of Health is to issue new guidance on the right of access to the health system.
Cristina Arigho, the EU Spokesperson for Employment, Social Affairs and Inclusion, told us that 'we expect a circular to be issued by the French government before the summer break.’
The
aim of the new circular will be to bring France into line with European
Regulation 883/2004, which governs the coordination of health and
social security systems throughout the EC.
She stated that once the circular was issued ‘the Commission would then close the infringement.’
‘However’, she continued, ‘we will monitor closely the application of the new circular.’
 Last June we reported that
the EU Commission considered France may be in breach of the regulations
by denying inactive early retirees’ access to the health system through
the CMU until they had completed five years residence.
At
the time Cristina Arigho told us that the European Commission was in
discussion with the French authorities to clarify the 2007 decree
concerning the Couverture Maladie Universelle and was analysing its compatibility with European law.
She stated that ‘the
Commission is working on a solution that would allow UK pre-retired
person’s access to health coverage. This involves close cooperation with
the French authorities to examine the French rules in place and seeing
whether they are in line with Community legislation.'
The November 2007 decree denied economically inactive expat early retirees access to the French health system through the couverture maladie universalle(CMU).
As
a result, since this date anyone relocating to France under the age of
retirement has been obliged to take out private health insurance on the
expiry of their E106 (now S1) cover, or take employment/self-employment
in order to then obtain health insurance cover.
Only when
inactive early retirees have completed 5 years legal residence are they
permitted to affiliate to the health system, although there are some
limited exceptions for 'accidents de vie'.
Affiliation to the CMU costs 8% of your net income above a minimum threshold, but is available free of charge to those on a low income.
Until
details of the new circular are published it remains unclear on what
payment basis early retirees will be granted health cover, just what
other terms may be imposed, and whether those on a low income will be
entitled to free health cover. It was the abuse by some expats of the
free cover concession that led to the clampdown in 2007.
The French Ministry of Health have confirmed in writing that a new government circular will indeed be issued this summer.