‘Impôts sur le fortune’ or wealth tax is always a concern to those considering moving to France on a permanent basis as this type of additional tax doesnt even exist in the UK!
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 wealth tax for those with assets below €1,300,000 in assessable assets.
|Assessable net asset values||Percentage applicable|
|Between €800,000 – €1300,000||0.00%|
|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%|
Unmarried couples will be taxed together for wealth tax, even though they are not taxed together for other taxes.
Wealth tax is assessed using the total sale value of all assets, although a 30% allowance is given against the value of your main residence. House contents etc. can be valued at a set 5% of total assets, or their real value may be used. Antiques, fine art and collector’s items are exempt, as are certain business assets. Any mortgage you have will reduce the net value of your estate for wealth tax purposes.
You may also deduct your local taxes, income tax and even your theoretic wealth tax bill as liabilities. Certain business assets are also exempt.
This will include all of assets worldwide including any cash, property or investments even if they are held in the UK.
If taxable asset values exceed €2.57 million, a separate tax return will be required, detailing and valuing all assets, otherwise it is now included in your tax return.
A law which came into effect on 6th August 2008, states that any NEW RESIDENTS of France do not have to declare their FOREIGN assets for the first five years of residence.
However it is also vitally important to make sure that any assets held outside of France are still tax efficient going forward so tax planning is essential.
The information on this page is intended only as an introduction only and is not designed to offer solutions or advice. Beacon Global Wealth Management can accept no responsibility whatsoever for losses incurred by acting on the information on this page.