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Old 06.05.2010, 22:31
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Selling a property in France to buy here

hi,
am planing to speak to a mortgage advisor/impot, but thought I'd try to get an idea by asking here first. I moved to Switzerland in March and am thinking of selling my apartment in France to use as a deposit to buy a property here. I'd still need a mortgage, Switzerland is much more expensive. It's my only property and was my primary residence. Would the money be subject to taxation in Switzerland?

Any information gratefully received - it took me a while to understand the French system and the Swiss system is different again!

thanks,
LMG
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Old 07.05.2010, 13:12
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Re: Selling a property in France to buy here

Not sure if you are talking about the transaction of moving it or when it is already here.

Anyhow, you will be taxed on it as part of your fortune, that is your wealth, whether it is in your bank account or spent on the downpayment of your residence. In Swiss, they use something like the rental value/price of the property you own to determine the basis for the fortune tax. Keep in mind you would need 20% down payment to purchase here, rest could be mortgage. Depending on how you structure your mortgage, most achieve significant tax savings through the mortgage interest.
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Old 07.05.2010, 13:39
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Re: Selling a property in France to buy here

As part of your worldwide assets, you will have a potentially small tax liability on the assumed rental value of the property.

On sale, as the French property is no longer you main residence, you will be liable to tax on any profit at the time of sale (less potential deduction for certain improvements). There is a decreasing tariff applied after 5 years and it is taxed at zero after 15 years. This tax is calculated and paid in France, by the notaire IIRC and you get a net cheque which is after mortgage/tax/charges.

Good luck with your sale, and if you know anyone who wants to buy 3 houses near Cognac.....
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Old 07.05.2010, 20:27
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Re: Selling a property in France to buy here

hi,
thanks for the replies. I have paid tax in France for three years and there is a loophole whereby you can sell one property in your lifetime even if you are no longer living in France without paying capital gains. I'm wondering about the Swiss side of things and if any profit is somehow subject to a capital gains or another tax in Switzerland, should I bring the money here and use it as a downpayment on a property here. Would seem unfair if it is, have only lived here five minutes, but I do now have a B permit and am Swiss resident

cheers,
LMG
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Old 07.05.2010, 21:05
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Re: Selling a property in France to buy here

Hi,
Try to call the local/cantonal tax office (or ask somebody to do this for You). I was asking about the tax from renting and they were very helpful and polite, even if they said that I don't need to pay anything in Switzerland :-)
Marcin
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Old 09.05.2010, 16:23
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Re: Selling a property in France to buy here

Thanks, I will speak to a mortgage advisor and the canton - will post back when I find an answer for anyone in the same boat!
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Old 09.05.2010, 16:35
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Re: Selling a property in France to buy here

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Thanks, I will speak to a mortgage advisor and the canton - will post back when I find an answer for anyone in the same boat!
And maybe an accountant? They are the tax pro's.
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Old 09.05.2010, 16:54
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Re: Selling a property in France to buy here

Thanks! Just wondering, are there independant mortgage advisors in Switzerland? Been looking through the mortgage related forums and most people seem to do it themselves. Just curious...
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Old 09.05.2010, 17:00
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Re: Selling a property in France to buy here

I sold my house in the UK for a tidy profit and shifted the funds here. I had no tax liability in CH as a result of the sale. In fact, a proportion of the profit went into my 2nd pillar, resulting in a very nice tax rebate that year.

There are independent financial advisors who can help you decided what the best mortgage is.
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Old 09.05.2010, 18:17
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Re: Selling a property in France to buy here

Thanks, that's helpful and congratulations

Have just requested an appointment with my bank to discuss, so will start there. This site is so helpful - will try to get an idea of the options re having several mortgages etc from the forums here before I go (I have until Friday!) -seems very different from UK and French mortgages. Not quite getting my head around the fact that you never seem to own the place yourself either, but am sure it will all become clear - eventually!

LMG
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