
After M Hollande’s visit to UK Prime Minister David Cameron on 10th July, the French President indicated that he may not levy social charges on UK residents renting out French properties.
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France are proposing to add social charges to the tax liability that non-French residents pay on their rental income and capital gains tax on sale. Until now, this charge has been restricted to French residents, as the ‘social charge’ (not to be confused with social security) has been levied to pay off a French social security debt.
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French taxes are renowned for being high, what with income tax and social charges on all forms of income, as well as an annual wealth tax. However, although the headline rates sound high (52.1%!), it is often unlikely that a retiree would have to pay such high taxes.
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