French tax warning for people with home there

ISLANDERS with property in France are being warned to take note of proposed changes to the taxation of holiday homes.

The French are looking to remove article 164C, which applies to residents of territories such as Guernsey that have not entered into a double tax treaty with France.

The article currently has a big impact on Guernsey-resident French property owners, exposing them to French income tax based on a notional income.

But the article's possible removal is not necessarily good news, according to Kate Brehaut (pictured), managing director of French tax and property advice specialist La Belle Vie (Guernsey), because the authorities are simultaneously proposing to introduce a new tax on French properties held by those resident outside France.

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