French Wealth Tax

If you already own a home in France or are planning to invest in property there, you should consider tax planning advice to find out what impact the wealth tax system could have on your investment.

France taxes wealth even if no transfer, death or disposal is involved. The French Finance Act dated 23rd December 1989 re-introduced a wealth tax payable by individuals when the value of their assets totals more than €760,000 on an annual basis.

Individuals who are not considered as tax domiciled in France are only liable to pay the wealth tax if the net value of their French based assets is above €760,000 threshold. For those domiciled in France their worldwide assets will have to be taken into account. The rates are on a sliding scale between 0.55% to 1.80%.

Only a few exceptions exist in relation to assets, which are not included in the wealth tax basis. Antiques more than 100 years old, literary and industrial rights, woodland owned and some pensions are also excluded. Properties, contents, boats and even shares (within limits) will be subject to French wealth tax. French wealth tax is due on an annual basis and involves the submission of detailed self-assessment. A misleading or incorrect self-assessment will attract penalties imposed by the Revenue.

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