If you are a nature lover and would love the sports and atmosphere found in the mountains, then why not consider buying a house in the Pyrenees?

It is perfect for avid skiers. In winter, you’re sure to get a lot of snow and there are many ski slopes to choose from. No chance of getting bored, either. For a bit of variation, you can pick between the slopes on the French side or travel a short distance to the tiny country of Andorra, which is located in the middle of the mountain range on the French-Spanish border. You can even plan a convenient car drive to Spain.

Once spring arrives, you’ll witness an amazing transformation. Flowers begin to bloom, animals wake up from hibernation and become more active and the whole area goes through a breathtaking metamorphosis. New sports are available too: camping, hiking, mountain climbing. There are many tourists who flock here for this reason. So if you’re not staying in your property during summer season or have a big property with spare rooms, you can generate extra income by renting out or offering bed & breakfast.

In much of Northern Europe autumn is a grey, wet and depressing season. But not in the Pyrenees! You’ll see the forests change their colours, and everywhere you look you will see the trees in their crimson glory. And the first snows start to fall.

Although a very serene and secluded place, the Pyrenees can quite easily be reached by road and air.

There are numerous airports in the area. You’ll easily get direct flights to the United Kingdom from Biarritz, Carcassonne, Pau, Perpignan and Toulouse. The airports also have excellent connections with Paris (from where there are flights to all parts of the world) and they offer some direct international flights as well.

On both the western and eastern side of the mountains there are the main traffic arteries that connect France with its neighbor, Spain. There is a motorway located on the northern edge of the mountains that likewise connects it to Biarritz and Bordeaux with Montpellier and Perpignan via Toulouse.

1 From a tax perspective is French property attractive as an investment?

Yes very much so. Many people have an idea that France has a high tax country but this is untrue. In many instances you’ll see how France is a lower taxing country than the UK and from a tax point of view an attractive place in which to invest in property.

2. How have the Rules changed?

Before 1st January 2004 the gain was calculated by the French resident taxpayer and included in the people’s annual Tax Return Form 2042. There was no charges by the notary on completion and to a certain extent the French Revenue relied on a rough honor system The notary dealing with the sale deducted 25% of the net gain made by non-resident individuals and 33 1/3 % made by non-resident companies and paid it direct to the French Revenue.

3. What are the new rates?

The rate of Capital Gains Tax (CGT) for both French and non-French residents, is 16% of the net gain. If you are French resident you pay an extra ten percent in French National Insurance making the effective rate 26%. In other words non-resident’s tax rate has been reduced by 9%, which on the face of it should encourage more foreign purchasers in France and will probably drive up prices. Once the 16% has been paid the non-French resident individual taxpayer can have no further French tax liability.

4. Whar are the rates?

If you are not par of the EU community ask these questions:

The rate goes up from 16% to 33.3%. This is stil l being studied by the Double Tax Treaty, which may improve the position. If you are not an EU resident and plan to buy a French property you need to think about a suitable EU, and probably French, vehicle to buy it in.

Those in their old age pension or are an invalid. This applies even if you are a non-resident. This is subject to some fairly detailed conditions set out in the tax code. There are a number of other more detailed exemptions. The main residence exemption which is similar to the UK one.