No more VAT on self-builds and renovations in France!

Non-professional private individuals who are not registered for TVA will no longer be subject to TVA  @ 19.6%  (French equivalent of VAT in UK taxed @ 17.5%) when they sell a property which they have extensively renovated themselves (i.e. more than 70% of the construction is new), or transformed a barn into a home changing its designation therefore creating a new home , or built their own home from scratch.

Previously, this tax has been applicable for five years from the date when  the declaration of completion of the works was submitted. This  was proving too difficult to manage for the Government tax authorities, notaries and agents alike.

So, if you come to France you can renovate or build a new house, when you come to sell it and providing that it is your principle fiscal residence, you will not only benefit from zero capital gains tax –  you will now also be VAT exempt  in France.

This is great news for amateur developers and experienced DIY enthusiasts.  However, beware that you will need to insure that the building work you carry out is covered by a ‘dommage ouvrage’ policy and that if you own a building company  you may be considered a professional.

The previous exemption on ‘droits de enregistrements’ (land registry and stamp duty equivalent) returns to the normal level of around 5.06%

We have many properties to renovate and land for sale

One thought on “No more VAT on self-builds and renovations in France!

  • April 28, 2018 at 12:02 pm
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    I plan to build a new house in France this year, here in the U.K. VAT is recoverable on materials, could you advise me if the VAT is recoverable in France and how would I recover it?

    I purchased the land several years ago and I now have the CU and planning permission.

    Your assistance would be appreciated.

    Sincerely

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