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Tips for French property investors
Buying a property overseas is not easy if you haven't done it before. Here are some tips which will help you to mature your investment project.
Finances:
The first step consists in financing the projet: buying cash or taking a mortgage. If you take a mortgage ,you take one in $ € £ or in any other currency. To avoid currency fluctuation which ad a risk to the investment, we adivce to take a euro mortgage. The rental income is paid in euro thus it is easier to pay back the mortgage. in the same currency. There are different types of mortgages and the 2 main ones are explained on this page:
Difference between Interest only and repayment mortgages
Taxes:
Nobody can avoid paying tax in his own country and it is the same in France. There is a tax treaty between France and most of the countries in the world to avoid a double taxation. If you have a French income, you will have to pay taxes on it. This page summarise it:
Income tax in France
Capital gains tax in France is called ‘impôt sur les plus values’ and is payable on the sale of land or buildings, on shares, and certain other personal property. It is determined by the difference between the sale price and the purchase price.
