IL Postcard

A Sweeter French Home

Date: 09/26/2007

September 27, 2007
Paris, France

Your new life in France just got more affordable. If you've been thinking about moving to this country, a new government move has just made the acquisition of your new home easier on your wallet.

A government proposal for tax breaks for homeowners in France has finally been approved. This means that anyone who has signed the deeds for their primary home after May 6, 2007 is now able to deduct 40% from their tax declarations for the first year of their home loan repayments, and 20% for the following four years. This is definitely something to celebrate as the first few years in any property-particularly the first year-are the most expensive, with all the extra costs that removal and settling in incur.

A person living alone who has bought a home in Normandy, say, will be able to deduct up to 1,500 euro in the first year, and 750 euro for the next four years. For a single individual with a 100,000 euro loan over 15 years at 4%, this means savings of 3,466 euros in the first five years-or more than 10% of the total cost of the loan. And if you can afford it, a seven-year loan would offer even better savings as the interest payment would be higher.* Who said France was expensive?

Best regards,

Maria Savage
International Living's European Consultant

*The total savings for the five-year period have been capped at 3,750 euro for individuals and 7,500 euro for a couple.