Britons Increasingly Falling Foul Of French Property And Tax Laws

by Jason Gorringe, Tax-News.com, London

10 November 2004

With buying second homes in France an increasingly popular pursuit for Britons, the Law Society has highlighted that a growing number of UK investors are being hurt financially through a lack of awareness of the French legal and tax system.

Some common pitfalls in the French system highlighted by the Law Society include the inheritance laws. The Society revealed that many Britons have been unaware that spouses may not automatically inherit a property under French law. Children also have a legal right to a share of the property.

Death tax, which in France is levied at 60% on gifts to non-relatives, is another area in which Britons have been stung.

"A growing number of people with homes in France find themselves in legal difficulties after not getting proper legal advice,” observed Edward Nally, Law Society President.

“It is essential that everyone buying property abroad has confidence that their affairs are in order and that their wishes will be carried out after they die," he added.

It is estimated that a quarter of million Britons now own property in France, and the Law Society now believes that it is time to raise awareness of the legal and taxation differences between the two countries.

On 19th November, the Law Society, in conjunction with the Paris Chamber of Notaries, is holding a training session intended to educate English solicitors and French notaries on the issue.

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