France

Tax on wealth in France

Do you own more than 1.3 Million?

Wealth tax in France

The French wealth tax (or "impôt de solidarité sur la fortune" ) is not without controversy. During the reign of president François Hollande, the French government reintroduced a higher tax on wealth. in 2016-2017 this tax was weakened again. 

For French citizens, this tax is calculated as a percentage of the total (international) wealth a family possesses and is due every year. Not only citizens, but other non-residents may be subject to this tax, but only for the part of their possessions that are situated in France.

With the current state of affairs, this tax is only applicable to fortunes that are above 1.3 million euro. Even if your fortune only exceeds this limit by 1 euro, the entire amount will be due (i.e. 0,5% * 500K = 2500 euro for 1.3M). The tax is calculated progressively and goes up to 1,5 % for everything above 10M euro. 

Off course, there are some exceptions like a deduction of 30% for your principal home, deductions for investments in a French SME or art. You can always calculate the tax yourself by using the official calculator.

Tranches de patrimoine net taxable

Taux

< 800.000 €

0%

> 800.000 € - 1.300.000 €

0,50%

> 1.300.000 € - 2.570.000 €

0,70%

> 2.570.000 € - 5.000.000 €

1,00%

> 5.000.000 € - 10.000.000 €

1,25%

> 10.000.000 €

1,50%

(Source: net-iris)