Changes to taxation rules governing the sale of French property will have little dramatic impact on either the French or the UK residential real estate market, it has been claimed.From January 2010, new laws will come into force which will grant an exemption on the three per cent annual levy on a property's value to investment companies based in the Channel Islands, Isle of Man and British Virgin Islands.However, investorsinproperty.com's managing director Simon Malster has explained that the effect of the new rules will be limited by the unattractive exchange rate between the pound and the euro.Mr Malster added that investment funds prefer to invest in commercial property as this offers set yields over a long period of time and is less susceptible to the speculation seen in residential property sales.The tax changes had been touted as an effective way for offshore investors to diversify their portfolio and secure a hedge against currency fluctuations.