Interest in property in France rises sharply

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With economic problems overtaking
many other European countries, the Daily
Telegraph has reported that there has been ‘renewed interest from expats
and overseas investors’ in property in France.

The newspaper reports that
between June and October this year, the Overseas Guides Company saw a 192 per
cent increase in interest in their guide to France.

Wealth tax changes to attract foreigners looking to buy property in
France

The Daily Telegraph reports that ‘with concerns about the economy in
Italy, Spain and of course Greece, experts say France is one of the Eurozone’s
more stable economies.’  The French
economy outperformed expectations in the third quarter of 2011 and so more
people are turning to France as a safe haven for property investment.

The French President, Nicolas
Sarkozy, has also outlined plans to increase wealth tax limits to offer
benefits to foreign property buyers.

Richard Way, an editor at the
Overseas Guides Company, says that British people looking to move to France
will certainly be attracted by the increase in the wealth tax threshold.  He told the newspaper: “Now, if your
total chargeable wealth is below €1.3m you do not pay any wealth tax. As from
next year there will be just two tax rates: 0.25% for households with wealth
between €1.3m and €3m and 0.5% for those with wealth over €3m.

“Most people are better off
under the new system; those who have high value assets but a relatively little
income might find it less attractive. Meanwhile, Spain has just reintroduced
wealth tax, after abolishing it in 2008; the threshold at which it kicks in is
a less attractive €700,000.”

House prices in France have also
risen steadily over recent months. 
The most recent figures from the French Federation of Estate Agents
(FNAIM) predicts that house prices will have risen by up to six per cent in
France during 2011.