{"id":103966,"date":"2021-01-20T16:05:54","date_gmt":"2021-01-20T21:05:54","guid":{"rendered":"https:\/\/sobarnes.com\/all-destinations\/acheter-de-limmobilier-de-prestige-comme-on-achete-une-oeuvre-dart\/"},"modified":"2021-05-21T06:39:23","modified_gmt":"2021-05-21T11:39:23","slug":"buying-luxury-real-estate-as-you-would-a-work-of-art","status":"publish","type":"post","link":"https:\/\/sobarnes.com\/en\/realestate\/buying-luxury-real-estate-as-you-would-a-work-of-art\/","title":{"rendered":"Buying luxury real estate as you would a work of art"},"content":{"rendered":"
Why invest in France?<\/strong><\/p>\n Tony Van Hagen: Paris is an international reference. Today it has regained the position it held 40\u00a0years ago as the nerve centre of Europe, on a par with London. Foreign investors had their fingers burned by Former President Fran\u00e7ois Hollande and his improbable tax reforms, but the situation was remedied with the election of Emmanuel Macron as President in 2017.<\/p>\n Is the French wealth tax (previously the \u201cISF\u201d) an obstacle for potential buyers despite being renamed the property wealth tax (\u201cIFI\u201d)? <\/strong><\/p>\n It\u2019s true that foreign residents in France are subject to this tax. But the real problem for them is the wording. \u201cProperty wealth tax\u201d is an inapt title. My clients accept the basis behind the tax, which is entirely justified. They often have similar taxes in their home countries, just under different names. Basically the French government needs to rename the IFI, which is essentially a property tax. The level of taxation, imposed on the net value of the property, after deduction of amortised outstanding loans, is, in fact, reasonable compared to other countries. In the end, it is a populist tax,\u00a0 designed to appease those used to the imposition of a wealth tax on \u201chigh net-worth\u201d individuals...<\/p>\n What advice would you give foreign investors looking to buy in France?<\/strong><\/p>\n It is important to steer them towards sound investments, those in the very best locations. In Paris, for example, clients should focus on specific areas of the 7th<\/sup>\u00a0arrondissement, just as they should select the best-placed properties in Saint-Jean-Cap-Ferrat, Monaco, Saint-Tropez and Cap d'Antibes.<\/p>\n Is the 7th<\/sup>\u00a0arrondissement the only neighbourhood of interest in Paris? <\/strong><\/p>\n Not at all. Paris\u2019 most elegant neighbourhoods tend to be protected and listed. Which is what makes the city so unique. The 5th<\/sup>, 6th<\/sup> and 7th<\/sup> arrondissements cannot, by definition, be extended, which means there\u2019s no risk of them being spoilt by new constructions. But if you want to guarantee the long-term value of your property purchase, the area between Saint-Germain-des-Pr\u00e9s and the Assembl\u00e9e nationale in the 7th<\/sup> arrondissement is your best bet. I would even go one step further and say that the focus should be on the left bank of Boulevard Saint-Germain, up to the River Seine!<\/p>\n