Holiday home in France post Brexit?
What will it mean for you?
There are over 200,000 British who own homes in France.
For those with holiday homes, what now? The consequences for those owning a French holiday home is uncertain. What is certain is that some or all the rights previously enjoyed will be preserved whilst others will not. If a deal is struck similar to Norway as an EEA member state, then little will change. However, this is unlikely and we must expect the UK to be treated like any other Non EU Country.
European Health Insurance (EHIC)
If Brexit servers ties with the EEA as well then EHIC will likely cease to exist.
No longer will you be entitled to any State provided medical treatment or heathcare in the EU or Switzerland. Overseas travel and health cover is going to be a must.
Rent out the holiday home?
There is unlikely to be any tax changes as a result of being a non EU resident.
The good news from Jan 2015 is that social charges should no longer be payable.
Selling your property?
- It is now likely in the future that you will need to appoint a French tax representative to act as guarantor to the French authorities in to deal with any calculation of French CGT. Previously, those resident in the EU were exempt from this condition. The representative will make the French tax calculation, determine what costs are deductible, prepare the return and liaise with the Notaire. Their fees range between 0.4%-1% of sale price. This makes it even more important to keep a note of expenditure.
- NO increases in French CGT are likely as a result of being a non EU member. Fortunately, back in January 2015 the French Authorities aligned the same tax rates for non residents and residents alike. This meant that a uniform CGT tax rate will be applied of 19% irrespective of residence. In addition, social charges of previously 15.5% can no longer be imposed on non French residents. The claim period for any charges previously imposed on non EEA nationals is 2 years.
Many will be aware that French inheritance law is subject to forced heir ship rules.
Since last year a new legal and administrative framework will apply to successions in Europe which interestingly can also apply to non EU residents. In essence an individual can nominate the law in their home Country of residence as the State to govern their estate rather under the direction of the Country that holds their assets through a certificate of succession. Whilst the UK opted out of the provisions it may still be possible to opt out of French Inheritance law by adopting an English Will which governs your worldwide assets. With the UK leaving the EU it is generally thought that this will still apply but this area is not free from doubt. It is advisable to seek legal advice.