French law comes into force
We are delighted to inform you that the long awaited French law of trusts was brought into force on 2nd March 2010. This simplifies French property purchases for “English type” trustees including trustees in offshore centres and SIPP pension fund trustees who can buy now in a way they are accustomed to without unduly complex structures. It is likely to be very positive for the prices of properties in France which are attractive to trustees. The purchase of commercial property including “leasebacks” by SIPP trustees will be simplified.
Offshore trustees in Jersey, Guernsey, Man, BVI and Cayman are almost certainly no longer going to be liable to the French 3% per annum tax following the entry into force of tax agreements between France and these countries which is imminent after the laws were approved last month by the French parliament.