You must be aware of the tax situation in France before you invest:
Income
Tax: a marginal rate increasing to 48% on net income above Euros 47.932
Capital Gains Tax: a flat 16% for non-residents (plus 10% social charges applied to
property and financial gains for French residents, making the effective rate 26%).
Wealth Tax: a 0.55% p.a. rate on assets above Euros 720.000 increasing to 1.8%
p.a. Only real estate is taken into account for non-residents whereas financial assets
are included for French residents.
Inheritance Tax: a rate of 5% increasing to 40% for transfers of assets to direct
family, 60% for transfers to “strangers” including unmarried partners.
Local Taxes: Determined by the size of your property.
We can give you sound orientation on fiscal issues, on how to reduce the impact of
all of the above (except local taxes) and make use of the tax breaks and planning
available.
A variety of tax efficient tools can be used, including different methods of property
purchase, company structures, life assurance, specific marriage contracts entered
into locally, loans to offset the value of your property …Call us !
Naturally, if your overall fiscal situation is complex, we will put you directly in
touch with the appropriate tax consultant &/or accountant from within our French
Investment Network.