The law on French agricultural orientation gives
tax
advantages to farmers who sell their business to young farmers.
Conditions of loans for assignies agricultural properties
Young farmers must be aged under 40 and be in the process of setting up in business or have been operating for less than 5 years.
Young farmer
will
be agree to receive part of the price at a later date.
Temporary measure : applies to sales signed between 18 May 2005 and 31 December 2010
Eligible sales
They must be of entire farms (all constituent parts of the property concerned in running the farm, entire business sector or all the seller's shares/stakes in an agricultural group or company).
Formalities
The sale agreement must be authenticated (i.e. drawn up by a notaire).
Condition of funding
At least half the selling price must be paid on the date of sale.
The balance is payable between the 8th and 12th year following the sale.
Payment must be in cash and the interest rate on the balance is capped.
Tax advantages
Tax deduction of 50% of the interest received up to an annual limit of : - €5,000 for single, widowed or divorced taxpayers, - €10,000 for married taxpayers or those in a Civil Union (PACS) subject to joint taxation.
