Property versus capital investments

Which is best?

Many people who have capital to invest will automatically look at securities such as shares or bond funds. Others are attracted to property, considering bricks and mortar a more solid, tangible asset. But which is right for you? 

This article does not attempt to predict which investment would give you the best returns – the best-performing asset class varies year by year and is notoriously difficult to forecast – but rather looks at various aspects you need to consider when weighing up these options.

While you may not want to “let the tax tail wag the investment dog”, as the saying goes, here in France you certainly need to consider the tax implications.

 

Capital gains tax

If you sell a property that is your habitual residence at the time of sale, the gains are exempt from capital gains tax. 

Otherwise, gains made on the sale of real estate are taxed at a flat rate of 19%, plus surtaxes, plus 17.2% social charges – ...

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