The tax payable on the entire value of a French property passing to one half of a divorced couple as part of the financial arrangements is set to increase from 1.1% to 2.5% from 1 January 2012.
Many of the proposed austerity / tax measures have been modified since first announced but unfortunately there doesn't appear to be any backdown on this one so far.
In the meantime if you have any clients who have delayed formalising such a transfer and have their decree absolute, there might still be time to get the transfer through by 31 December 2011 if they act immediately.
Capital gains tax on second home sales is set to change too with fewer allowances and abatements so sales to third parties will also be affected from next year.
