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French property investment to benefit from tax changes

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New tax thresholds could provide an extra incentive for property investment in the strong French market.

The French government is planning to increase the wealth tax threshold next year to try and improve the economy and draw in more foreign investors.

Richard Way, an editor at the Overseas Guides Company, told the Daily Telegraph the changes will mean those with a chargeable wealth below €1.3 million (£1.1 million) will no longer pay the tax.

Two rates will also be introduced, with a tax of 0.25 per cent placed on those with a wealth between €1.3 million and €3 million, and a 0.5 per centcharge for those will wealth over this level.

Peter Mindenhall, a researcher at IPINglobal.com, a global property investment firm, said: "France has always been held in high regard by British property investors for several reasons. The leaseback system offers security over the long-term, and the French economy has traditionally been reasonably stable."

He added the changes will be particularly beneficial for those who are making cash from their French property investments.

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