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Old 11.04.2018, 22:03
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Buying a property in France (as a CH resident)

Hi,

I found related questions on the forum, but none covering the point of tax on rental income.

I'm playing with the idea of buying a small apartment in france while I live in Switzerland. Something very cheap like a studio somewhere, just to put away money and have a tenant help offset the mortgage costs.

As I understand, there is some wealth/property/estate tax to pay in both CH and FR, which are not very significant, but my main question is how the tax on the rent works? I've found very contradictory information, ranging from 10 to nearly 50%, and even differing on to which country it should be paid.

Can anyone, who actually knows, give me a ballpark idea of what kind of tax we're talking about on, say, an apartment bringing in 500 euro per month rental income?
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Old 11.04.2018, 23:10
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Re: Buying a property in France (as a CH resident)

I was very close to buying a place in France, but after exchange messages with Papa Goose, I changed my mind.
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Old 12.04.2018, 09:17
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Re: Buying a property in France (as a CH resident)

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Hi,

I found related questions on the forum, but none covering the point of tax on rental income.

I'm playing with the idea of buying a small apartment in france while I live in Switzerland. Something very cheap like a studio somewhere, just to put away money and have a tenant help offset the mortgage costs.

As I understand, there is some wealth/property/estate tax to pay in both CH and FR, which are not very significant, but my main question is how the tax on the rent works? I've found very contradictory information, ranging from 10 to nearly 50%, and even differing on to which country it should be paid.

Can anyone, who actually knows, give me a ballpark idea of what kind of tax we're talking about on, say, an apartment bringing in 500 euro per month rental income?
The tax needs to be paid in France.
French CGT & social costs are paid on any profit made in the first 27 years of ownership, CGT tapers quite nicely between 15-24 years however social costs still hit hard until the end.
When I bought only CGT which lasted 15 years, tax laws can change for the worse.
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Old 12.04.2018, 13:47
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Re: Buying a property in France (as a CH resident)

For that sort of PM rental, really not worth the hassle. Always sounds good on paper, but the paperwork, red tape, insurances, taxes both income and capital, fees, the sale taxes FMF mentioned, repairs, and the ever present possibility of tenant issues. Throw in the French property market is still falling just not a great investment proposition. If I could, I'd sell my 2 properties in a heartbeat if I could... except French property values are low enough to look up a whale poop.
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Old 12.04.2018, 19:38
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Re: Buying a property in France (as a CH resident)

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For that sort of PM rental, really not worth the hassle. Always sounds good on paper, but the paperwork, red tape, insurances, taxes both income and capital, fees, the sale taxes FMF mentioned, repairs, and the ever present possibility of tenant issues. Throw in the French property market is still falling just not a great investment proposition. If I could, I'd sell my 2 properties in a heartbeat if I could... except French property values are low enough to look up a whale poop.
You'd probably be better off finding a few kilos of whale poop. Are your properties near the ocean?

Last edited by miniMia; 12.04.2018 at 20:26.
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Old 12.04.2018, 20:11
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Re: Buying a property in France (as a CH resident)

LOL, I promise I do not work for 'Bon ā Savoir' magazine, or have shares.

But worth getting this month- as they go through this in depth- and give a scenario where the tax due is actually less after purchase of a property in FRance. Depends on 100s of factors, mortgages, etc, etc.
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Old 12.04.2018, 20:30
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Re: Buying a property in France (as a CH resident)

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LOL, I promise I do not work for 'Bon ā Savoir' magazine, or have shares.

But worth getting this month- as they go through this in depth- and give a scenario where the tax due is actually less after purchase of a property in FRance. Depends on 100s of factors, mortgages, etc, etc.
Be aware purchase costs on a 5 year old plus property are roughly 10%, less on new or nearly new.
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Old 12.04.2018, 20:55
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Re: Buying a property in France (as a CH resident)

Not interested at all myself at the mo.
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Old 12.04.2018, 23:14
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Re: Buying a property in France (as a CH resident)

Ok, looks like a pretty universal agreement that it's a hassle. But you haven't deterred me just yet. I mean, if the French system is such a hassle I can always buy in other places with much less daunting legal/tax systems. I'm just curious to hear other peoples' personal experience.
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Old 12.04.2018, 23:22
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Re: Buying a property in France (as a CH resident)

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I can always buy in other places.....
Clearly you didn't read the replies..... but good luck with that
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