considerations when buying French property

Buying French property for leisure and holidays

This situation applies where your main residence is in the UK and you are
considering buying a  holiday home in France.

In this situation all your assets will be governed by English law apart from your French real estate which will be governed by French law both from a succession and tax point of view. Therefore you will need to understand how French succession and inheritance tax rules will affect your French property and how this will impact upon the succession and inheritance tax planning you may have in place in England.

You will need to understand French capital gains tax and sometimes French VAT. You will need to understand how the rules on French and English taxes interact, particularly from capital gains point of view, and from an inheritance tax perspective.

Buying French property as an investment

Additional considerations apply when you are buying a French property as an investment, such as in the case of leaseback arrangements or where you are buying a lake for fishing purposes or commercial property for rental income.

Further consideration has to be given to the interaction between French rules and regulations and taxes and those that may apply to your business and/or personal structure in the UK. For instance it is likely to be necessary to register for income tax and VAT in both England and France.

Buying French property - moving to France to live

Obviously if you are considering purchasing a property in France with the view residing in France permanently then there will be far more variable to take in consideration, particularly if you are also setting up a business in France. You will need to consider the amenities which you will need in your vicinity. For instance if you have young children, you will need to consider schools and transport links. It is wise to plan your finances and have a realistic view of the income you will need to live on.
You will need to consider the implications of French residency and tax issues as well as the structure of any business you may be thinking of setting up or acquiring. It is also worth considering in advance whether there are any tax planning opportunities which should be taken advantage of prior to moving to France.

Buying French property - retiring to France

Again, there are host of considerations to be taken into account such as : location including proximity to transport links, ability for the family to visit, treatment of your income and / or pension. It is also wise to consider the tax treatment of other assets, and also whether you can take advantage of tax planning opportunities prior to moving to France. Finally it is worth giving serious consideration to issues surrounding residency and domicile, and also whether it is in your best interests to retire permanently to France at all.