Mythical Hotels, houses of exception, castles, prestigious establishments, real property of the State or by private individuals, disused barracks and prisons, there is everything.
Despite the crisis in the real estate market, the enthusiasm of foreign investors for the acquisition of property and other real property or public or private on the hexagon, seems to maintain while creating anger and concern on the part of many French who criticize to the State to squander the heritage to repay the "debt" and do not submit more administrative constraints to the purchasers.
France drew the covetousness of large fortunes in the world: from the businessman to the Amir, the big boss, who withdrew and wished to convert, the broker of the City who acquires a property to go its old days or where people can enjoy themselves, all have decided to invest in the stone or the earth and to enjoy "the French art of living", to take advantage of the privileged geographical situation of the France and to benefit from attractive prices in comparison with other international markets, such as London, New York, Hong Kong… ".
Now, after the Qataris, the Lebanese, the Africans and the Russians, it is the turn of the
The Chinese Rush
At the beginning of years 90, the Chinese are starting by repurchase of trade of textile in the neighborhood of the Sentier in Paris and then, of the Maghreb started in Belleville. With surpluses of foreign exchange reserves and of public or private assets very high, China has a capacity of investment extremely powerful. In 2010/2011, France became the first receiver in value with 5722 million dollars (source Rhodium Group)
Some Chinese investors have chosen to resume units of French production, with economic benefits for the France very mixed. Others have succumbed to the shots of course and have invested in the vineyard, seduced by the notoriety of the french wines, their prestige but also in the concern to develop the consumption of French wine in China.
In recent years, 24 wineries have been redeemed in the Bordeaux region by Chinese investors (China is also the first importer of Bordeaux with 70 million bottles, either 10% of production), 2 other properties have been acquired recently in Burgundy, including the famous Chateau Gevrey-Chambertin , yielded to 8 million euros to a Chinese billionaire, owner of game rooms in Macau. This transaction has also provoked strong reactions among the grape growers in the region who had watches purchasers by providing 5 million € for the redemption of this grand cru in " sides of Night" (original selling price: €7 million ).
There is also the case of the Domain Mouth (Chateauneuf du Pape, side of the Rhône plan-of-god) in the Vaucluse which lack of heirs concerned has sold his farm to a partner franco-chinese, Field Dong Creations Industries for the purpose of "consolidate its market shares in China" and "renovate his field".
Vineyard In the middle, the massive arrival of these Chinese investors is apprehended as a phylloxera of a new kind, the one who will be the death knell of the traditional know-how and the strong reputation of great vintages. Except the fact that the operation is maintained by the French winemakers, the investment has little economic value and does that outbid the price from the vineyard to yield, limiting or condemning as well access to potential investors Europeans.
The Chinese side, acquire a castle in France sounds such as a romance in the former empire of the middle and hold a wine estate granted to their investment, a sure value.
In any event, the French remain the first investors in the vineyard and are often local owners wishing to be open to the international.
"A great sell-out" of the French heritage?
When in 2010, Bercy announced that the State would sell 1700 real property by 2013 in order to reduce the "debt", many are offended by this "approach thankless" then that for decades, this practice is borrowed by all successive governments, except that the divestiture programs were established for a year.
The majority of these goods are between other administrative buildings disused due to the recent reforms carried out in the reorganization of the judiciary and the military (gendarmerie, barracks, prisons, courts, other sites), the State administration of taxation….. whose servicing is extremely costly and unnecessary, as well as "prestigious buildings and extraordinary" (Castles de Bridoire, Maveyre Park, home of the Red Devils (ex-officers' mess), the "Small Montjoux" on the edge of Lake Leman…etc).
Among the buyers, the local communities that can do play their right of first refusal and private buyers or foreign. The state account recover 2.2 billion euros on these sales.
"Ô rage, o despair"! The State squandered the "jewelry of family", "everything is for sale", "save the history"! The resentment didn't have long to wait: some fearing a loss of identity, reminiscent of a colonization to the Chinese and other predicting "a hangover blown when France wakes up".
Simply, for years, the France turned to aspirin, with an economy lagging, for years, the France diminishes!
The only effective cure is well the nutrient intake of "infusions d'ide * " which would allow the country to come out of its semi-comatose state
INNOVATION: This is the theme of the campaign that come to launch the French Agency for international investment (SUBMITTING) and the national institute of industrial protection (INPI) in order to attract new foreign investors.
Say yes to France
20,000 Foreign companies operating in the hexagon, providing more than 2 million jobs and 30% of exports.
It is in refining its image tarnished by many shots to the alien: the 35 hours, the strikes, a taxation heavy… .and by turning in a mockery of all these prejudices that France would be able to seduce new foreign investors.
The potential buyers targets are: the United States, Canada, China, India and Brazil.
Use of the testimony of foreign companies already located and submit all the strengths to persuade potential international industrial potential of the french, this is the aim of the current broadcast video on the net: "Say yes to France".
In fact, according to the CEO Europe of the ZTE (Chinese telecommunication equipment manufacturer), Lian Qiang, "the French labor is very well qualified, experienced and easy to mentor" and the France enjoys "a significant capacity for innovation". For the CEO of the Danish group Novo Nordisk (pharmaceutical industry), "France has become one of the country where the tax treatment of R&D is the most generous".
The takeover of NFM Technologies and of Blue Silicones in the Lyon region (Group Rhodia) by Chinese investors has allowed us to preserve the jobs, to stimulate investment and start from the conquest of the Chinese market.
In other regions, especially in Britain, the Chinese have taken over the companies in the agri-food thus avoiding the disappearance of enterprises. In parallel, Chinese banks are following their investors at the settlements.
The campaign of INNOVATION is of course size. Encourage foreign firms to establish themselves on the territory also requires some adjustments and reforms, in matters of the right to property real estate, tax, customs, social.
The measures envisaged and possible
The unfortunate experience of the company MacCormick France in Saint Dizier acquired by the public company of Chinese tractors YTO has demonstrated that the French legislation was not adapted to regulate the transactions with China. In effect, MacCormick is one of the leaders in the manufacture of transmission for tractors. During the takeover, YTO had announced the launch of the production of its tractors to Saint Dizier but he did nothing. There is a fear that the technology MacCormick has joined the assembly lines in YTO in China.
Another example: Currently, the projects for the creation of "Parks of activities franco-chinese" are in progress in order to facilitate the establishment of Chinese SMES, to create jobs in situ. In parallel, a symmetric park must be built in China. Viable Project or not? The Chinese they will hire themselves to have a industrial activity in France where these parks will be used to facilitate the Chinese imports?
At the present time, the project of "activity park franco-chinese" planned to Chateauroux is not ready to see the day: discontinuance of the initial Chinese partner of the ITC and the city to the last minute, not enough nominations to Chinese SMES, these recent requiring the layout and equipment of the site…
In order to ensure the commitments of the purchasers, penalties should be imposed up to the cancellation of the sale.
Impose an additional tax on the property tax and capital gains real estate cashed by the non-resident for tax: an aberration
In July 2012 Ayrault, the government announced its intention to introduce "a measure who submits to the levies social (15.5 %) the property tax and capital gains of real estate source french cashed by the non-resident for tax. Up to this law, non-residents were beyond the reach of the CSG and CRDS, another supposed to fill the abyss of the social security ". (Source SICAVONLINE).
An announcement clumsy: Calculation income wise and juicy but yet would it have taken anticipate the reactions, not agencies or real estate developers, who without much surprise consider this measure as "a enormity", "obscene and unjustified", but of these non-resident for tax to which it will have to explain why they will have to submit to the levies social which in fact do not involve. How to explain to one British, one American that he should participate in the bail-out of social security coffers in..then that home, the social protection is almost non-existent, and that the retirement funds are predominantly private?
It would have sufficed to gradually enhance the rate of taxation which are subject non-residents: member States of the EU: 19 %, "33.33 % if the non-resident for tax purposes is domiciled in another State which is not a state or territory non co-operative" etc.
This measure risk to curb the enthusiasm of many potential foreign buyers but also, to compensate for the loss to the value, cause a price increase on the resale for cashing any of even the more-planned initial value before the transaction. Which means all in all, that the property will be even less accessible to French residents in general.
The right of property in France must change
To enable future generations access to the property, these are the concepts of usus, fructus and abusus, in their entirety and in the duration over which the legislators will need to consider:
- By imposing limited periods in the form of a lease of 30, 60, 90 years
- Participation of French residing in France in the capital of a SCI
- Limit the speculation in the resales of real property by imposing a expertise designed to estimate the actual value of the transaction and in cases exceeding of x%, subjecting a surtax on the more-value. ( =more-value - 19% - 15.15 % -surtax)
France for sale? France is certainly not to sell. It is in the midst of transformation. The acquisition of some of its property by foreign investors is more rewarding than to deplore. After having suffered a massive rural exodus in the last five decades, she attended gradually to the repopulation of the Commons, not thanks to demographic performance of aboriginal people, but by the attractiveness and the charm that it exercised in the eyes of foreigners. It causes of lightning strikes without be a executioner of course, offers strong moments in authenticity, a quality of life that many envy him and knows how to be hospitable to them who know the love. France has a lot of benefits and by its landforms varied as by its geographical situation.
Say yes to France, it is first of all to accept to share to become stronger, this is not a colonization and it is for this reason that France will also install its conditions to its new actors including from the Celestial Empire.
In fact, the effort will have to be mutual. Under the speech of cooperation is often conceal this thirst for power and greed among the Chinese investors, enclosing the interlocutor easily French in his bubble of naivety. The Chinese are acting on their country before all, that is in any case of the youngest age that they are investing for the homeland. The speed of their expansion is fear for the West that the China arises any or later in state "overlord" in Europe. Except if they are able to "play" with the Chinese legislation by focusing primarily on their own interests.
Although it is a real estate is hardly delocalisable and its environment even less.
Finally for those who may have a short memory, France was built with foreigners to be today what it is: a multicultural society, young and quite inclined to welcome on its soil Americans, Brazilians, Indians…determined to do with it, a little way.
Written by Chantal DOUPEUX
* France for sale: France is to sell
* IDE: foreign direct investment