The French Revolution for Consumer Protection

President of France, Nicolas Sarkozy, Bastille Day 2011

French Property Insider
Volume IX, Issue 28
July 14, 2011
Paris, France
FrenchPropertyInsider.com

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Bonjour French Property Insider Subscriber,

On TV channel TF1, the President of the Republic Nicolas Sarkozy prepares for the annual Bastille Day parade along the Champs-Elysées. The troops are lining up, the officials are in the grand stands and the jets are rolling down the runway awaiting take off. The sun is shining brightly, the French flag is waving proudly under the Arc de Triomphe and the spectators are getting close to the barricades to get a good look at the soldiers, the tanks, the horses, etc. that are about to head down the famous avenue.

No one is thinking of much, but enjoying the holiday that celebrates the liberation of French people from the tyranny of the monarchy. Subsequently they instituted Napoleonic code (1804) forbidding privileges based on birth, allowing freedom of religion, and it specified that government jobs must go to the most qualified. It was the first modern legal code to be adopted with a pan-European scope and is thought to have influenced the whole world. Interestingly, "Louisiana's civil code has kept its Roman roots and some of its aspects feature influences by the Napoleonic Code, but is based more on Roman and Spanish civil traditions. As a result, the bar exam and legal standards of practice in Louisiana are significantly different from other states, and reciprocity for lawyers from other states is not available." (Wikipedia.org)

As the ceremonies progress on the Champs-Elysées and Place de la Concorde, I am reminded of the strict enforcement of the laws in France that are designed to be as fair and equitable for the common man as they deem it possible, including quite a lot of consumer protection laws may differ from the way our own Anglo Saxon systems view equality. In the realm of property ownership, protecting the rights of the common man includes forced heirship, squatting rights and time set aside to consider buyer's remorse.

One of the laws that protects purchasers of property in France is the seven-day period known as the "délai de réflexion" -- a seven-day cooling off period, following the signing of the sale and purchase agreement. This provides the buyer (only) with an option to retract his purchase within seven days of the purchase with no legal or financial ramifications.

Laws of this nature apply to many kind of purchases or commitments to contracts, but in this case, we're dealing solely with the decision to purchase a property, but not including a plot of land, garage or other ancillary buildings. It is also not available to purchases made through an "SCI" (Société Civile Immobilière) or real estate company.

The period starts from the point you receive the final signed contract. If you personally sign in front of a Notaire, then you will normally be given a copy of the contract, and the seven day 'period of reflection' begins the following day, or if that day is a holiday or weekend, then it starts the first working day. If the Notaire or other party has signed on your behalf, then the period begins the day after you have received the document by registered mail.

The presale agreement includes a statement certifying that you are aware of the seven day cooling off period.

In order to retract your purchase, prior to the expiration of the cooling off period, you will need to send a registered letter to the Notaire giving official notice, but you are not obligated to give a reason for the retraction.

We do not advise anyone to enter into a contract for the purchase of a property with the idea that retraction is easy. This kind of consumer protection provides a period of time to reflect fully on the purchase and ensure that all conditions meet your requirements.

Very few of our clients have taken advantage of the right. I was one of them -- having retracted the purchase of an apartment in Nice after two contractors saw potential problems with the staircase leading to the apartment.

In another case, our client was concerned that his investment wouldn't provide the return he was expecting and let his fears dictate the decision. That same apartment sold to another one of our clients three months later. Well located and beautifully renovated, she, on the other hand, has reaped tremendous reward, not only from the rental revenues, but from the sheer enjoyment of the use and big changes in her life now that she spends so much more time in Paris.

For more information about the various periods of reflection offered by French law, visit:
http://www.economie.gouv.fr

A bientôt and Happy Bastille Day!

Adrian Leeds
Editor, French Property Insider
Email: fpi@adrianleeds.com

P.S. For a full report on Tuesday's Parler Paris Après Midi, visitparlerparis/apresmidi.html and be sure to read this coming Monday's Parler Paris Nouvellettre® for a full report of this year's Bastille Day celebrations at parlerparis.com

Rue Montorgueil, 2nd Arrondissement, Photo by Wikipedia

Second to None: Rue Montorgueil

French Property Insider
Volume IX, Issue 27
July 7, 2011
Paris, France
FrenchPropertyInsider.com

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Bonjour French Property Insider Subscriber,

HGTV's House Hunters International returns to Paris this weekend to film the final part to a fourth episode in which we participated -- a story surrounding a single mother from Los Angeles who purchased a two-bedroom apartment in the 2nd arrondissement, just a few steps from rue Montorgueil. This is Paris' oldest open-air shopping street and one of the newest/hottest spots in the City of Light.

In a Web site devoted to the district, the history of the area is described as dating back to the 12th-century when King Philippe Auguste converted the marshland into fields (Les Petits Champs) and at that time, rue Montorgueil was known as rue Comtesse d'Artois. The king was astute and progressive, creating coverings to protect the merchants' wares and rue Montorgueil flourished as a shopping street. The name changed during the French Revolution resulting from the words Mont Orgueil (Mount Pride), because a tree was planted in its highest part to celebrate the Revolution.

Last night I was in the district seeking a restaurant in which to dine. Most of the eating establishments were filled to the brim at 8 p.m. and the entire area around rue Montorgueil and the surrounding pedestrian streets were buzzing with activity. This district is one of the more colorful in the city, bordered on the east by the traditional Red Light District (rue Saint-Denis), on the south by Les Halles, on the west by the financial district (La Bourse) and on the north by the garment district (Le Sentier). It's mix of residents lends itself to an eclectic slice of Parisian life centering their affairs around the market street.

The current gentrification of the area is rapidly changing its character and moving it up, up, up on the scale of elegant living. As prices are increasing, the undesirable elements are decreasing and thanks to the central proximity of the district, it's sure to become one of the hippest spots in which a Parisian can be.

According to meilleursagents.com, the average per square meter price in the district is 9,060€, but anyone in the industry can tell you that is about 20% lower than the current market -- and apartments in the Montorgueil vicinity are selling quickly. In adjacent districts, prices are higher -- 10,615€/m2 in the 1st and 9,921€/m2 in the 3rd.

Vacation rental apartments are becoming more popular as tourists are catching on to the area's charm. Aside from rue Montorgueil, one can visit the Tour Jean-Sans-Peur, the historic headquarters of the Paris Stock Exchange (Bourse de Paris), the Opéra Comique and the Bibliothèque Nationale de France...among others including the adjacent Eglise Saint-Eustache and Les Halles.

The apartment which is the subject to the latest House Hunters International episode has just been renovated by Interior Architect Martine di Mattéo and the family is moving in -- that's the focus of the filming this coming weekend. When it's scheduled to air we'll be sure to let you know! Meanwhile, consider the 2nd district as potentially your new home away from home and plan on watching our latest episode airing tomorrow which takes place in Normandy...scroll up for details.

A bientôt,

Adrian Leeds
Editor, French Property Insider

(with Mimi Chiang, HGTV Subject and Apartment Owner in the 2nd District)

Email: fpi@adrianleeds.com

P.S. Be sure to join us Tuesday, July 12th at Parler Paris Après Midi when author Jeffrey Greene talks about "The Burgundy You Probably Don't Know: A Talk, Short Reading, and Illustrated Tour." Scroll down for more details.

It's a Hot Time in the Old Town Tonight

August 2009, Photo by Benoit Tessier for Reuters

French Property Insider
Volume IX, Issue 26
June 30, 2011
Paris, France
FrenchPropertyInsider.com

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Bonjour French Property Insider Subscriber,

Le Saint-Tropez...cool as a cucumber: air conditioned, large terrace and lots of light -- available this Summer.

SAY HELLO TO ANOTHER HEAT WAVE

We're expecting another heat wave this summer. Spring 2011 was the hottest in 100 years, as well as the driest in the last 50 years. So, get out your fans and air conditioning units...2011 could be the hottest on record. As a visitor, choose to stay in air-conditioned apartments or hotels, or make sure there's good cross ventilation. As purchasers of French property, either find ways of air-conditioning your property or again, look for good cross ventilation.

HEATED UP PROPERTY PRICES, SALES COOLING OFF

At the end of April the price of property in Paris and the Ile-de-France is still up, up, up, but the volume of sales has waned.

From February through April, 2011, sales of apartments decreased 5% in the Ile-de-France and 8% in Paris.

Resale apartments increased in price over the previous year by 17.2% in Ile-de-France and 21.7% in Paris. For the quarter, increases over the previous quarter were 4.2% and 5.4% respectively.

There is no doubt that there are more properties on the market now and our agency contacts claim the French aren't paying the high prices. While the high price of real estate is good for those who already own, it's not good for those just entering the market...so we are watching carefully...and staying 'cool.'

HOT PACS

With the legalization of the gay marriage in New York, we here in France polish our nails on our shoulders with PACS -- Pacte Civil De Solidarité -- a contract between two adults of the opposite sex or same sex, to organize their life together...just about as close to a marriage as two people can get.

France doesn't see it as at all trivial and a contract of this kind is every bit as powerful to someone's future as a marriage contract. The Chambre de Notaires can assist future partners on the scope of the choices they make: Who can enter into a PACS? How to enter into a PACS? How to dissolve a PACS? Can hold the convention of PACS? How to protect your partner? What are the implications of PACS?

Click here to learn more (in French), download the Chambre's brochure

A bientôt,

Adrian Leeds
Editor, French Property Insider

Email: fpi@adrianleeds.com

P.S. Believe it or not, I haven't yet seen my own House Hunters International show set in Normandy! It airs July 8th (see below for details), and would appreciate any of you who can record it and send it to me (via an upload or other electronic fashion)! We thank you in advance!

Martine's Idea of "Maison Chic"

Maison Chic, July 2011

French Property Insider
Volume IX, Issue 23
June 9, 2011
Paris, France
FrenchPropertyInsider.com

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Bonjour French Property Insider Subscriber,

The agent in Nice pressured me to sign the "Compromis de Vente" (pre-sale agreement) as quickly as possible on the apartment on rue Massena, placing blame on our Notaire for the delay -- as it is NEVER the seller's fault! So, I did all I could to speed up the process and scheduled the signing for this past Tuesday. Only 30 minutes prior to arrival they had received a copy of the "Réglement de Coproprété" (by laws of the homeowner's association). Upon review, the document clearly outlined that rental of any furnished apartment in the building was forbidden. "Quelle surprise!"

Naturally the seller and the agent had assured me there was no issue with the rental of the apartment from the get-go, so the questions are: Was this version out-dated (1978) and the regulation had been amended at some time since? Had they lied? Or not known? Either way, it was irresponsible to have allowed the process to go this far without verifying that I had the right to rent the property.

With no panic nor real concern, we phoned to get confirmation from the seller's Notaire that they would requisition a copy of the correct and registered document, but that would take another two weeks. I also agreed to sign, but with the contingency that the regulation be changed prior to closing.

No doubt, however, is that without the associations' permission to rent the apartment, another will have 'bitten the dust' and I'll be back to square one in Nice looking for another apartment to fulfill my Riviera dream. Ugh. Perhaps these are all signs pointing me away from Nice and to some other project. I'll keep you posted.

Meanwhile, my focus turned toward other exciting matters. Magazines Maison Chic (France) and Casa Chic (Italy) published byLotus Publishing (Italyl) have published a 23-page spread in their July issues devoted to Le Palace des Vosges, our fractional ownership property in the Place des Vosges!

Magazine director Maria Letizia Tartaglini opens the issue with the following phrase (translated): "Marie-Antoinette, the movie by Sofia Coppola, has provided the source of inspiration to the decor of 17th-century stables transformed into an apartment by interior designer, Martine di Mattéo."

This is OUR Martine di Mattéo, who has also transformed 13 of the apartments offered byParler Paris Apartments and Paris Palais Apartments, a half-dozen others available through other agencies and is currently working on several more which will be added to the roster this coming year.

Martine may not be the queen of France like Marie-Antoinette, but she is the queen of Contemporary Château Chic -- a term we've created to describe her brilliant use of contemporary-style comfort with château elegance that fits today's Parisian lifestyle. She marries rummage sale antiques with reproduction furnishings, chooses high quality materials and adds rich fabrics and textures to turn a box of an apartment into a palace. Starting with good 'bones' (a property with good attributes), Martine can add the 'smoke and mirrors' to create a successful theme-park-like luxury rental apartment.

In some of her later projects, she has collaborated with mosaic artist, Véronique Husson, who designed both Le Provençal andLe Saint-Tropez/La Brigitte. Motifs in tile at the hand of Husson add an even further artistic element to the décor, much like the addition of artist Pascal Amblard's paintings, which you will find in Le Palace des Vosges as well as in many of the others.

One thing that strikes you upon entering any Di Mattéo designed apartments, is how comfortable one feels from the first moment -- that every item is so cohesive with the other elements. It's subtle, but effective. As Martine herself says, she tries to tell "one story." Whether the decor is Shabby Chic, Art Deco or Modern, nothing feels out of sorts, and all is harmonious in style, color and pattern.

Martine and I met when she was fresh out of taking courses to perfect her interior design skills, although she had many years experience in retail display. Our first collaborative project was Le Penthouse Voltaire about five years ago. Since then, our clients and we have enjoyed a mutually beneficial relationship. We suspect this will continue for years to come -- as it's a marriage made in heaven, our children being the apartments -- and the fruits of our labor.

This issue of French Property Insider is devoted to Martine di Mattéo, her devotion to her work, her clients' properties and her clients and to our goals to provide oases of French heaven in the midst of a sea of Ikea-clad rentals for less discerning guests.

Shares in Le Palace des Vosges are currently available for sale -- four weeks per year of usage for each of the 13 owners. Unsold weeks are available for vacation rental. To learn more, visit:

Purchase: http://www.palacedesvosges.com
Rental: palace_des_vosges.html or palace-des-vosges

To Martine, bravo on your success.

To view the article in its entirety, download the pdf by clicking here:http://www.palacedesvosges.com/Maison_Chic_July_2011.pdf

A bientôt,

Adrian Leeds
(with Martine di Mattéo at Le Palace des Vosges' Inauguration)
Editor, French Property Insider

Email: fpi@adrianleeds.com

P.S. Don't miss the newest House Hunters International episode: Historic Country Homes in Normandy -- Episode HHINT-2411H, airing June 12th and July 8th. Visit House Hunters International-Normandy for more information.

Paris Property Report: The Sky's the Limit

For Immediate Sale:
51 m2 on rue Vieille du Temple (3rd) for 730,000€ (*See the P.S.)

French Property Insider
Volume IX, Issue 22
June 2, 2011
Paris, France
FrenchPropertyInsider.com

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Bonjour French Property Insider Subscriber,

The report is out. Paris property prices are up 20.8% this past year -- from first quarter 2010 through first quarter 2011. And that's an average! In one district, the 7th, prices have soared as high as 27...%. Crazy?! "Au contraire." It was to be expected. Interest rates remain low and available housing on the market struggles to increase, therefore demand is up and owners are reluctant to sell. So, it's not a surprise that sales actually diminished by 12% over the same period.

Much to the dismay of the politicians who are scrambling to find affordable housing for their constituents, the idea of holding on to property and renting it at a profit grows in popularity...by both the French and by foreigners who see an investment opportunity...just like us.

The average price per square meter in Paris is up to 7,780€, but certain central districts have risen over the 10,000€ per meter mark -- the 4th, 6th and 7th. Only the 19th district is still under the 6,000€ per square meter line. For the first time in four years, the 7th district (11,880€/m2) has surpassed the 6th (11,870€), followed by the 4th (11,080€). A fourth district passed the 10,000€/m2 bar -- the 1st with 10,030€/m2. In contrast, the least expensive district remains the 19th at 5,970€/m2, followed by the 20th (6,380€/m2) and the 18th (6,830€/m2).

This period has shown the strongest growth in the last 20 years measured at between 16.4% (2nd) and 27.3% (7th). Per square meter prices vary between 5,900€ in the Amérique quarter of the 19th and 12,710€/m2 in Les Invalides of the 7th.

There has been a lot of discussion about the French property market heading toward a "bubble" that could break at any moment...but there is enough evidence to show this isn't true. Prices trending upward has more to do with a lack of inventory and that doesn't appear to be solvable in the near future -- particularly in Paris where historic districts are protected and new builds are virtually impossible. Interest rates are creeping up, which will diminish demand, therefore prices may tend to level, but there is no sign of a burst of the so-called bubble!

How high can prices go? As long as investors have the funds, lenders are willing to lend and inventory remains low, there is no telling. What's of primary concern is how rental rates are not keeping up with cost and therefore return on investment from the perspective of rental revenues, is lessened, even if appreciation remains strong.

Is it a good time to buy? My opinion is 'yes.' At today's low interest rates (under 4%), it's a perfect opportunity to get your toe in the proverbial water and in five, ten or 20 years, you'll be very happy you didn't pass up the opportunity...like so many are doing now when they had the same chance a few years ago!

SPECIAL NOTES:

The property price figures for Paris and the Paris region (Ile-de-France) are reported quarterly by the INSEE, the French National Institute for Statistics and Economic Studies. The statistics are released about two months after the closing of the quarter based on the selling price noted on the "Acte de Vente" or sales deed. Given that the properties to which the statistics relate were purchased about three months earlier than the deeds were recorded (the time between the signing of the Promesse/Compromis de Vente and the Acte de Vente), you can assume then, that these figures are already out of date by at least five months.

Other factors that contribute to a variance are: 1) the reduction in the purchase price, which can be attributed to direct payments made to the sales agent (agency commissions) to help reduce Notaire fees,

2) the listing of inventory of fixed furniture such as built-ins and appliances,

3) the under-the-table cash transactions, which are illegal but do occur,

4) and finally, the figures are diluted as they are reported by an arrondissement in its entirety and do not account for differences by neighborhoods or quality of properties.

To read the report in its entirety, download the pdf (in French) here.

A bientôt,

Adrian Leeds
Editor, French Property Insider

Email: fpi@adrianleeds.com

P.S. *This beautiful 51m2 apartment with mezzanine in a historic Hôtel Particulier has just come on the market for 730,000€. If you are interested, contact us immediately, as it will be sold within moments!

Who's on First? Or... What's On in the First?

Les Halles...Let the Renovation Begin!

Who's on First? Or...
What's On in the First?

French Property Insider
Volume IX, Issue 21
May 26, 2011
Paris, France
FrenchPropertyInsider.com

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Bonjour French Property Insider Subscriber,

Les Halles, located in the very center of the city (1st arrondissement, once known as the "belly of Paris" when it was the city's central wholesale marketplace, was demolished in 1971 and replaced with an underground shopping center that the city has regretted ever since.

The marketplace was moved to Rungis. Beneath it is the underground station Châtelet-Les-Halles, a central hub of the RER, Paris's express commuter rail system where 750,000 travelers pass daily. During the conversion period, the site was one enormous open pit, nicknamed "le trou des Halles" (the hole of Les Halles) and was an eyesore for many years at the foot of the church of Saint-Eustache.

Now 40 years later, Les Halles is undergoing another massive renovation to right the wrong of the past and once again, it's looking like "Le Trou." Architect David Mangin won the award to redesign the project a few years ago and the work has begun with a vengeance. What is planned is "a new inviting public garden, a larger pedestrian district, a new building inspired by nature, a greater number of easier-to-use pathways and routes, a larger, more functional regional train station, an enlarged, refurbished shopping center, more cultural facilities and a reorganized underground road network."Completion is scheduled for 2016.

What is most fascinating from our perspective is of course, not only what Les Halles will become, but how it will affect the real estate in the adjacent districts. For now, one must travel around it, rather than cross the once winding paths of the garden to go from the first arrondissement to the second. This cuts the second off from the center of the city for the time being, but 2016 isn't so far off. If Les Halles promises to be all the city hopes for it, all adjacent districts will benefit from the renewal. My guess is that property here will be prime...as long as the changes help reduce the crime and bring a higher class of resident as well as tourists to the now less desirable city center.

There is an information center at the southeastern corner where you can see the miniature model and pick up brochures. More information is at the official Web site at http:/www.parisleshalles.fr

Just a few blocks down from Les Halles is another project undergoing massive renovation -- La Samaritaine. This was one of Paris' first department stores having opened in 1869 at the foot of Pont-Neuf (the city's oldest bridge), which closed in 2005 when the building didn't meet safety codes. Declared a historical monument, the 11-story Art Déco structure was known well by tourists for it's beautiful architecture and outstanding views of the city from the rooftop terrace, if not for its wares.

La Samaritaine will reopen prior to Les Halles -- in 2014, as a fusion of hotel (80 rooms), shopping center, office and apartment complex, with a new glass facade and the interior entirely renovated. It promises to provide 2,400 new jobs. What will happen with the rooftop terrace is entirely under speculation. I have my own fantasies for what is possible there!

You may visit the project at 83, rue de Rivoli and for more information, visit http://www.paris.fr

Both renovation projects promise to bring the 1st arrondissement to a new level -- more befitting the heart of Paris than we've witnessed to date. I urge all investors to consider renewed interest in the first district -- as with all these improvements, the value of real estate is sure to rise.

A bientôt,

Adrian Leeds
Editor, French Property Insider

Email: fpi@adrianleeds.com

P.S. Next week we will be reporting on tonight's event, "Legal and Compliance Issues for the US Expatriate," presented by Joel M. Nagel of Nagel & Associates, LLC and Peter A. Zipper, Caye International Bank, Ltd. Stay tuned...

Nice is Nice, Talk on Tax

Nice is Nice, No?

French Property Insider
Volume IX, Issue 20
May 19, 2011
Paris, France
FrenchPropertyInsider.com

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Bonjour French Property Insider Subscriber,

NICE IS NICE

Today I made an official offer on an apartment in Nice in the "quartier" known as the "Carré d'Or" just off Place Masséna. It's expensive, chic, and well worth it, given its location and immediate amenities.

(Read about it in more detail in yesterday's Parler Paris Nouvellettre®:parlerparis.com/issues/pparis18-5-11.html)

Many people have asked, "Why Nice?"

Besides the fact that 'Nice is nice,' I strongly believe that Nice and the adjacent Riviera towns are going to see value growth over the next few years, particularly once the TGV (Train à Grande Vitesse) goes to Nice direct from Paris. The Nice airport is already international with flights from Air Berlin, Air France, Alitalia, American Airlines, BLU Express, Easyjet, German Wings, Sterling Airlines and Virgin Express. That makes Nice the air travel hub for the entire Côte d'Azur and travel to Nice is not expensive -- flights from Paris are as little as 70€ round trip.

The TGV from Paris to Nice is scheduled to be completed by 2025 and will reduce travel time from 5 hours 25 minutes to 3 hours 50 minutes. It will also improve the service between Marseille and Nice to be within one hour of each other. Developers are predicting it will reduce the traffic at Nice Airport, currently the country’s third largest, eliminating about half its routes. My bet, however, is that because of the ease of travel, the entire area will become increasingly more visited -- perhaps a factor they are not considering?

(If you're interested in learning more, here's a great article at:http://www.thetransportpolitic.com)

The Côte d'Azur is also poorly servicing the North American client. If you are British or Italian, there are lots of property specialists who can think like you think and satisfy your needs and desires, but culturally ours are quite different and few represent our style of living and traveling. When I visited a beautiful apartment under complete renovation in Old Nice, it was evident that the space in the bedroom would not accommodate a bed larger than 140cm (double), nor had they planned for closets to house large suitcases. We Americans are big people who need lots of space. We travel with large suitcases filled with all our favorite necessities (I know many who don't leave home without their own pillows!) and we want all the creature comforts our hard-earned money can buy, "n'est-ce pas?" They hadn't thought about any of that -- but instead went purely for the esthetics without concern for comfort or convenience...not at all American style thinking.

I am convinced that Americans love the Riviera as much as they love Paris and Provence and would be happy spending more time there if they were made to feel a bit more welcome. We hope to be a part of the pioneering spirit as a result of my soon-to-be testing of the 'Mediterranean waters.'

(Stay tuned for more or write me to learn how we can help you become a pioneering, too.)

TAX ON TALK

The word "tax" seems to be synonymous with the word "France" -- since this is one of the highest taxed societies in the world. And even with this, the country is still falling short and seeking new ways of earning more money, particularly from those who have more of the wealth (at least this part seems fair enough).

A draft has been presented to the Parliament and may be enacted by July of this year, with some measures to enter into enforcement before 2012. For now, these are proposed amendments.

Wealth Tax will be reformed, but fortunately for foreigners, the tax is only assessed on real estate held in France, and not on the value held by a mortgage company...one very good reason for mortgaging your French real estate.

As of the first of 2012, it is proposed that non-residents (including French taxpayers who have left France) owning residential property that is at their disposal and not rented out will be subject to a new property tax, unless more than 75% of their worldwide income is derived from French sources. The tax base will be the deemed annual rent and the rate will be 20%. Expats that lived in France for three years within the ten year period before they left France will be exempt for a period of up to six years.

Clearly this concept is designed to raise money and reduce their housing shortage -- since so much property remains unoccupied in France. Those with second homes will be hit harder than those who have investment properties.

An exit tax will be imposed on those transferring their tax residence out of France. Like our Capital Controls Act, France is trying to keep its euros inside its borders -- and it will concern transfers as of this past March.

For more information about the French tax system, see this pdf in English:http://www.impots.gouv.fr/

A bientôt,

Adrian Leeds
Editor, French Property Insider

Email: fpi@adrianleeds.com

P.S. If you have not already reserved your place for the Special Event: "Legal and Compliance Issues for the US Expatriate" presented by Joel M. Nagel of Nagel & Associates, LLC and Peter A. Zipper, Caye International Bank, Ltd, there are only a few seats left, so do not delay. Scroll down for more information or visitFrenchPropertyConference.com