General characteristics

Real property wealth tax: general characteristics

 

Since 1st of January 2018, the wealth tax has been replaced by the real property wealth tax.

Pursuant to the new sections 964 to 983 of the French Tax Code, the tax applies to French real property assets held directly or indirectly whose total fair market value exceed € 1.3 M as at 1st January each year.

The reform aims at reducing the wealth taxation by restricting its scope to real property assets. However, the definition of the taxable French property assets has been broadened and several anti-abuse provisions applicable on debt deduction have been adopted. 

Main features :

  • Tax due on global net real estate assets held directly or indirectly by individuals (unless tax convention applies) 
  • Tax due as at 1st January each year
  • Declaration with income tax 

 

     Net wealth (€)          Tax     
0 < 800 000  0%
> 800 000 < 1 300 000 0.5%
> 1 300 000 < 2 570 000  0.7%
> 2 570 000 to 5 000 000 1%
>5 000 000 to 10 000 000 1.25%
> 10 000 000 1.50%

 

loupe

example

€ 10 M net wealth = € 98,190 (circa 1% taxation)

€ 2 M net wealth = € 7,400 (circa 0.37% taxation)

 


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