French Property Insider
Volume IX, Issue 17
April 28, 2011
Paris, France
FrenchPropertyInsider.com
Bonjour French Property Insider Subscriber,
UPDATE ON THE WEALTH TAX REFORM
Last week we talked about the new laws regarding the Wealth Tax or ISF (Impôt de Solidarité sur la Fortune), and published the parameters of the last reform of the law in 2007.
To bring you further up to date, now the threshold will increase from 800,000€ to 1.3 million euros of assets, but the scale will be reduced. Assets valued between 1.3 and 3 million euros will be taxed at 0.25% and those above 3 million at 0.5%, while current rates range from 0.55% to 1.8%. As expected, the government decided to abolish the tax shield and the cap of the ISF.
Those that will not benefit are those with assets between 1.3 million and 1.404 million euros...they are the only ones to see their contribution to the ISF increase with the reform and will pay up to 500€ extra. The reform will actually be beneficial mainly for larger estates, which emerge as the winners.
DECEMBER 2010 THROUGH FEBRUARY 2011
REAL ESTATE MARKET STATISTICS
The real estate market in Paris and in the Ile-de-France continues to show strong results. In comparison to the same period last year, the volume of sales is up 7% in the Ile-de-France (6% for apartments and 9% for houses) and 1% in Paris.
Prices remain strong as well with Paris prices soaring and expected to continue until the end of June. The milestone of an average of 8,000€ per square meter is likely to be achieved at the end of the first semester. The shortage of property on the market is fueling the prices increases. After the first semester, the situation is uncertain. Market conditions will depend on the increases in interest rates for housing loans and the expectations by both sellers and buyers.
To read the report in its entirety (in French), click here.
A bientôt,
Editor, French Property Insider
Email: fpi@adrianleeds.com
P.S. Interest rates are already rising! Getting financing is your first step to a property in France. For more information, visitfrenchpropertyloan.com or email us at loan@adrianleeds.com to take advantage of our free mortgage brokerage services.
