Although the French lower house of Parliament (Assemblée Nationale) had
adopted the government's Estate Tax reform bill, one of its main proposals
has been withdrawn.
After recently meeting with Minister for the Budget and representatives of
French expatriates, the French President, Nicolas Sarkozy, announced the
withdrawal of the proposal to tax second homes in France owned by non-French
residents.
The tax on second homes in France was to be an annual tax of 20% on the
notional rental value of the property applicable to those who do not live in
France all year round and choose not to rent out their French property.
Criticised by cross party representatives notably for its discriminatory
nature and unworkability under EU rules this new proposed new tax has been
scrapped even before the French Sénat (upper house of Parliament) has had a
chance to examine the reform.
