Last month saw the proposal of a new tax in France which would hit those who own a holiday home there, including French nationals. This week it has been confirmed that the plan has been scrapped.

The tax would mean that anyone who owned a second home in France would be forced to pay 20% on the annual rental income that their property could bring in. This is regardless of whether or not the property was generating any income.

Had the planned new tax gone ahead, it is though that an estimated 360,000 homes would have been affected; many of which are owned by French nationals who live abroad.

It is thought that French president, Nikolas Sarkozy has been persuaded that the bill was not a good idea; leading to him scrapping it after it had already been approved.

The news will come as a relief to all those who own a second home in France, who already pay two sets of tax to the French government!

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