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Property Wealth Tax in France
2018-11-20 System Administrator 0 French Life Tax and Finance
‘Impôts sur le fortune immobilière’ (IFI) is an evolution of wealth tax, which was one of the largest obstacles to moving to France for many people with significant assets. The good news is that this tax, as from 1st January 2018, is only applied to property, though it may also be applied to funds investing in property.
Wealth tax is payable on an annual basis by any household, owning taxable assets worth over the threshold on 1st January. Payment is due in June. There is no tax for those with below €1,300,000 in assessable assets.
Assessable net asset values Percentage applicable Below €800,000 0.00% Between €800,000 – €1300,000 0.50% Between €1,300,000 – €2,570,000 0.75% Between €2,570,000 – €5,000,000 1.00% Between €5,000,000 – €10,000,000 1.25% Above €10,000,000 1.50%
Unmarried couples will be taxed together for property wealth tax, even though they are not taxed together for other taxes.Property Wealth tax is assessed using the total sale value of assessable assets, although a 30% allowance is given against the value of your main residence.
You may also deduct your local taxes, income tax and even your theoretic wealth tax bill as liabilities. Certain business assets are also exempt.
Nearly everyone we talk to is surprised at the level of wealth tax they will have to pay, with the bill being significantly lower than they expected and this change to applying, only to property, means that far fewer people will be affected by it.
For those that are, there are many ways to reduce it, it just requires some careful planning.
Article brought to you by Kentingtons Tax & Investment Consultants For more information please visit http://www.kentingtons.com/capital-gains-tax-in-france/
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