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Posts from the ‘Real estate transfer tax’ Category

7
Jan

Real Estate transfer tax – Rates applicable in Paris since 1st January 2016

 

Given the rate increase passed by the Paris council on Nov. 23, 2015 (see our previous article) and the adoption by the French Parliament of an additional tax of 0.6% for offices, business premises and storage premises located in Ile de France (see our article dated Nov. 16, 2015), we felt it necessary to make a first recap of the applicable rates since 1st January 2016 to sales of buildings in Paris, pending comments from the tax authorities.

Property sold by a VAT taxable person acting as such:

– Building completed less than five years: 0.715% (including offices, commercial premises and storage premises)

– Building completed more than five years – offices, commercial premises, storage premises: 6.40% except commitment to sell within five years (1.315%) and commitment to build within four years (to 125 eur to be confirmed) – leaseback agreement with a bank (1.315%)

– Building completed more than five years – other cases: 5.80% except commitment to sell within five years (0.715%) and commitment to build within four years (125 eur) – leaseback agreement with a bank (0.715%)

Property sold by a non VAT taxable person:

– Offices, commercial premises, storage premises: 6.40% except commitment to sell within five years (1.315%) and commitment to build within four years (125 eur to be confirmed)

– Other cases: 5.80% except agreement to sell within five years (0.715%) and commitment to build within four years (125 eur)

We also took advantage of this summary to update the DMTO/RETT space.

 

24
Nov

Paris – increase of the real estate transfer tax on 1st January 2016

 

As from 1st January 2016, sales of buildings completed for more than five years will be subject to the RETT at the global rate of 5.80% instead of 5.09%. This increase also concerns sales of buildings completed less than five years when performed by non VAT payers.

Sales of buildings completed less than five years remain subject to the RETT at the global rate of 0.715% when performed by VAT payers.

Concerning the office, business or storage buildings located in Paris, the global rate should actually be increased to 6.40% subject to adoption by French Parliament of Article 21 of the Amended Finance Bill 2015 (see on this subject the article of November 16).