| Alongside Lichtenstein, Switzerland and Norway, | | | | tax like business assets and share capital, |
| France has its own Wealth Tax based on heritage. | | | | antiquities over 100 years old, objets d'arts, |
| Many countries in Europe decided to remove this | | | | woods and forests. |
| tax during the nineties and at the beginning of the | | | | So how exactly does this French Wealth tax |
| 21st century like Austria, Italy, Denmark or | | | | work? Each year, the taxpayer needs to monitor |
| Germany. Created in 1981 by the Socialist party | | | | the value of his assets. There is no need for a |
| after the President's election, the French Wealth | | | | professional valuation to be made. As a |
| Tax (called "Impôt de Solidarité sur la | | | | self-assessed tax, the taxpayer needs to know |
| Fortune") is in place in order to redistribute wealth. | | | | the value of its assets in order to declare it. He |
| It concerned 539,000 taxpayers in 2009 against | | | | will not be asked to pay this tax. The tax is |
| 300,000 in 2003 due to rise of real estate price. | | | | progressive and split into seven tax brackets |
| More than 200,000 people own net assets lower | | | | from 0% to 1.8% depending on the value of your |
| than €1M in France. | | | | assets. A rate applies to each tax bracket and it |
| This Wealth tax applies to anyone owning a net | | | | is the total amounts that will add up to the French |
| asset over €790,000 in France. It is based on | | | | Wealth tax. 150€ by dependant in the |
| the household including spouse and children | | | | household must be deducted from this total |
| meaning only one single wealth tax return should | | | | amount. |
| be submitted. Resident in the country or not, you | | | | * Taxable amount (€) 0 - 790,000 Rate (%) / |
| must declare your asset and pay this tax if | | | | Cumulative tax to upper limit (€) / |
| applicable. It is a progressive tax which is only | | | | * Taxable amount (€) 790,000 - 1,290,000 |
| applicable on the amount above €790,000 at a | | | | Rate (%) 0.55 Cumulative tax to upper limit |
| rate ranging from 0.55% to 1.80%. | | | | (€) 2,585 |
| What is good to know is that when you move to | | | | * Taxable amount (€) 1,290,000 - 2,530,000 |
| France, you won't need to pay the French wealth | | | | Rate (%) 0.75 Cumulative tax to upper limit |
| tax on your asset located outside France during | | | | (€) 11,660 |
| the first five years. In the sixth year, you will | | | | * Taxable amount (€) 2,530,000 - 3,980,000 |
| have to declare your entire worldwide assets on | | | | Rate (%) 1.00 Cumulative tax to upper limit (€) |
| the French wealth tax form. Don't worry, French | | | | 25,660 |
| tax avoidance is a national sport in France and | | | | * Taxable amount (€) 3,980,000 - 7,600,000 |
| you can easily find a tax expert who will help you | | | | Rate (%) 1.30 Cumulative tax to upper limit (€) |
| to minimise the amount of taxes you need to | | | | 71,290 |
| pay such as investing the equivalent of wealth tax | | | | * Taxable amount (€) 7,600,000 - 16,540,000 |
| in a small French company (Internet start up...). | | | | Rate (%) 1.65 Cumulative tax to upper limit (€) |
| The wealth tax return should be sent with the | | | | 214,180 |
| payment. It must be submitted at different times | | | | * Taxable amount (€) Over 16,540,000 Rate |
| depending on where you live: | | | | (%) 1-80 Cumulative tax to upper limit (€) / |
| * You live in France. Your tax return must be | | | | What are the sanctions for those who do not |
| submitted by June 15th. | | | | want to pay the French Wealth tax? What people |
| * You live in Europe. You must send your tax | | | | should be aware of is that the tax office has the |
| return by July 15th to the following address: | | | | possibility to reassess a taxpayer seven years |
| Recette des impôts des non-résidents | | | | after with consequent late fees. |
| TSA 10010 | | | | Moreover, what you should know is that when |
| 10 rue du centre | | | | you take a French Mortgage to purchase your |
| 93465 Noisy le Grand Cedex | | | | property in France, the amount of this mortgage |
| France | | | | is deductible. For example, if you purchase a |
| * You live in the rest of the world. Your tax | | | | property of €1M and you take a mortgage of |
| return must be submitted by August 31st to the | | | | €400,000, the net value of your asset is |
| above address. | | | | €600,000. By consequence, you will not have |
| Some assets can be exempted from the French | | | | to pay the French Wealth tax. |