Property in France

A tax change in the New year which allows certain real estate investors to avoid paying tax on certain properties in France is set to change the dynamics of the European property market, it is claimed. 
From 1 January 2010, companies and trustees managing investment funds in the Channel Islands, Isle of Man and British Virgin Islands will be able to invest in French properties free of the French annual 3% tax on their open market value.

This will radically alter the flow of funds within Europe and represents a genuine threat to any recovery in the UK property market while boosting the French market, it is claimed.

As the worldwide property market continues to struggle, many had assumed places such as the French Riviera would be the first to fall but so far this has not been the case - at least on the surface!

While prices were actually deemed to have risen last year in some areas of France, to the surprise of many property experts, a little more investigation into this phenomenon reveals that all may not be as it seems. Under the surface there have been a number of issues coming together which could see property values in sought after areas such as the French Riviera fall substantially over the next few months. So what exactly is going on?