Introduction: When selling a second property in France, it is important to be aware of the regulations surrounding the offsetting of works and improvements carried out on the property. In France, there are specific rules regarding the eligibility of expenses incurred for tax purposes. This article aims to shed light on the requirement to use qualified artisans registered in France where you will pay French TVA (value added tax) on the work carried out.
Qualified Artisans and Registration: To be eligible for offsetting, the works and improvements must be carried out by qualified artisans. These artisans possess the necessary professional qualifications and are registered with the relevant French authorities. The registration ensures that they comply with the required standards and regulations, providing assurance of the quality of their work.
French TVA and Offset Works: Another important aspect to consider is the payment of French TVA (Value Added Tax) on the works and improvements. When you pay French TVA for the work carried out, it becomes an eligible expense for offsetting against the CGT liability. This means that you can deduct the amount of the total costs including the TVA paid from the capital gains tax owed when selling the property.
The Importance of Compliance: It is crucial to adhere to these regulations to ensure that you can benefit from the offsetting of works and improvements when selling your second property in France. Failure to use qualified artisans registered in France which will mean you pay French TVA on the work carried out may result in the disqualification of these expenses for offsetting purposes.
Seeking Professional Advice: Navigating the intricacies of French tax regulations can be complex, especially when it comes to selling a second property. Therefore, it is highly recommended to seek professional advice from a notaire (French notary) who can guide you through the process and ensure compliance with all legal requirements.
Conclusion: When selling a second property in France, it is essential to understand the restrictions on offsetting works and improvements. Only expenses incurred for works carried out by qualified artisans registered in France where you have paid TVA are eligible for offsetting against the CGT liability. By adhering to these regulations and seeking professional advice, you can navigate the process smoothly and maximize your tax benefits.