Author:Derek GrimshawFrance provides a stable political climate, a beneficial market to invest, round the year tourist locations and huge returns on investment in both resale and rental properties. Moreover UK and France share the double tax treaty which allows the person to pay tax only once on his earnings. Some of the favorable reasons for buying property in France are
• The Property prices in France are relatively low when compared to most European Countries.
• France has a big requirement for good rental apartments/houses on a long term basis. The percentage of people who rent property as opposed to those who purchase property is much higher in France than in UK. Thus the long term residential property price growth in France is approximately 10 percent per annum with a respectable net rental yield summing up to 8-10% of the investment.
• France rely more on its residents on investment in property (95%) who constantly purchase holiday or permanent accommodation. Thus France has a rigorous buying going on, a protective legal system and a wonderful resale market.
• France is providing 100% finance for foreigners with mortgage rates about 4% and low Euro interest rates. Government backed “leaseback” Investment property with guaranteed yields up to 5.5% and full VAT refund of 19.6%. French Law allows all costs including mortgages to be settled against rental income which reduces the amount of actual tax paying.
• The Capital gains tax on housing rentals has been halved to 16% and can be exempted if the bearer holds the property for more than 15 yrs.
• It is the most visited tourist location in World with constantly emerging tourist market demanding fresh supply of new tourist accommodations.
• Property investment in France is provides opportunity to enjoy the cosmopolitan atmosphere, culture, lifestyle, french food and wine etc. in holidays and earning rent from the property rest of the time.
Thus France is a land for investment in Property these days especially for the UK citizens.
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