The European Commission has formally requested France to amend provisions which allow investments in new residential property situated in France to benefit from accelerated depreciation, but do not allow the same for similar investments abroad. The Commission considers such provisions to be incompatible with the free movement of capital, a fundamental principle of the EU’s Single Market. The request takes the form of a Reasoned Opinion (the second step of an infringement procedure). In the absence of a satisfactory response within two months, the Commission may refer France to the European Court of Justice.

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