French President Francois Hollande has made changes to the capital gains tax on the sale of second homes (CGT), according to the portal A Place in the Sun. Since 2014 the minimum period of tenure, after which the property will be fully exempt from capital gains tax when it is sold, is 22 year. Earlier this period was 30 years. It is estimated that this measure will have a positive impact on the development of the real estate market in France.
Last year's tax reform is called among the main reasons that home sales in the beginning of 2013 dropped sharply, despite the abundance of favorable conditions on the mortgage. The new tax policy has already led to the fact that many foreigners refuse to buy property in France.
In 2013 mortgage rates have updated a historic low, and the cost of private ownership has declined. The government is trying not only to regain the trust of foreigners, but also to spur sales in the domestic market.