Taxe Foncière – Land or Property Tax is paid by the owner of the French Property whether you live in the property or not. New properties may be exempt from land tax for the first two years provided the local council has agreed to such an exemption.
Taxe d’habitation – Residence Tax is paid by the person living in the French Property as of the 1st of January each year. If you rent your property to someone else on a long term basis, then they are liable for paying this tax.
Capital Gains Tax – No capital gains tax is due if you are selling your principal residence to buy another home in France. For a non-resident, but a resident of a EU member state, the capital gains will be 19 percent for the first five years reducing to zero at the end of year fifteen.
Wealth Tax – affects French residents with world-wide assets over €800,000 and is calculated progressively in bands above this figure starting at 0.55% per annum to a top rate of 1.8% for those with assets in excess of €16,790,000 . Non-residents are subject to wealth tax if their net assets in France (excluding financial assets) are greater than €800,000.
Inheritance Tax – in France differs substantially from that in the UK. You should seek advice from your notaire and a tax specialist preferably before signing the compromis de vents.
Income Tax – If you are deemed to be resident in France (if your main residence is in France, if you spend more than 183 days a year in France, or if your principal economic activity is in France) then you will be subject to French income tax on your worldwide income. If you are non-resident but have French assets you will normally be taxed at a flat rate of 20% on any income derived in France.
While every effort has been made to offer information which is current, correct, and clearly expressed, the information in this summary is intended to be no more than a general overview. Please consult a professional French registered tax advisor for more specific information and a personalised taxation advice service. French Mortgage Xpress can provide contact details for some local tax professionals
*Note: The above is purely a guide line and you must seek professional advice from a French registered personal tax professional.
