Tax information

1. A choice must be made whether or not to fall under the TVA (VAT) regime. Falling into the TVA regime is especially interesting if it is a new build home and the buyer can reclaim the TVA from the entire home. For existing construction, it is predominantly more attractive not to fall under the TVA regime. That is the issue here.
2. The amount over which tax must be paid depends on whether the park is classified:

Without classification: 50% standard deduction, so the base is 50% of € 7.500 = € 3.750

With classification: flat-rate deduction of 71%, so the basis is 29% of € 7.500 = € 2.175

3. In case of classification, the amount of € 2.175 is taxed at 27,5%, so € 598

This 27,5% is structured as follows:

• • 20% income tax
  • 7,5% social security charges

Explanation of social charges:

• • For EU residents under the French social security system, the charges are 17,2%
  • For EU residents not covered by the French security system, the charges are 7,5%

4. To report annually, you can report to the French Impôt once. You will then receive a form that you must complete and return to the Impôt. If you wish, RFN can assist you with this.

Tax is levied on the profits made on the sale of the house. Two things are important in this regard:

1. Determination of the sales profit: the difference between purchase price + purchase costs + professionally executed construction work and the sales price
2. The number of years between purchase and sale

Tax calculation

• The rate is 26,5% (19% income tax and 7,5% social security charges)
• For the 19% and 7,5%, separate deductions that are related to the number of years are:

19%:

• • from the 5th year, 6% to the 21st year expire every year (16 x 6% = 96%)
  • in the 22nd year the last 4% (4%)
  • after 22 years full exemption (96% + 4% = 100%)

7,5%:

• • from the 5th year onwards 1,65% until the 21st year (16 x 1,65% = 26,4%)
  • 1,6% (1,6%) in the 22nd year
  • van 23^e - 30^e jaar jaarlijks 9% (8 x 9% = 72)
  • after 30 years of full exemption (26,4% + 1,6% + 72% = 100%)