€ 650 (EXCL. VAT)
The Wealth Tax, (“ISF” in French), is an applied tax on the wealth of “rich” people. The political philosophy behind this taxation is to increase the contribution of people who are at the end of their professional career and thus no longer generate any taxable income sufficient for the needs of the state budget. The ISF is applicable in Latin countries such as Italy, Spain and Greece.
- F19: E-Service N°10 – Forfait ISF € 650 (Excl. VAT)
How can I avoid taxation if WT is not included in the scope of the NDTT with my country?
There is no way to dodge the law. We recommend minimalist declaration rather than absence of declaration because the French are very formal and you would be taxed on an arbitrary basis.
I am planning on buying an expensive property in France which is above the wealth taxation threshold. Is there a way to avoid taxation before I sign the purchase agreement?
The taxable basis must be the net asset value. Should you have signed up a bank loan, the value of the loan can be deducted from the purchase value to make it net, thus reducing all the more the WT. As there is no indebtedness cap, if you raise 100% funding, you can write off the taxable basis for a while.
I have forgotten to declare WT for the last 10 years, what is my tax exposure?
Pursuant to the WT regulation, the administration is entitled to adjust the value retroactively over the past 10 years. If you have not faced a tax audit yet in France, there are two options :
● Either you catch up the past 10 declarations with payment attached and you negotiate with the tax inspector in charge for reduction of overdue penalties.
● Or you keep quiet and, failing any tax audit WT contingency related to Y-10 is written off every year… Should you decide to sell it out, the transaction would generate a capital gain, and you would be taxed with a 30% arbitrary withholding deduction. At this step, the administration may wake up if the value exceeds 1.5 € M.
The trade-off between options depends on the area, the visibility of the property, the value… We can help you make this decision.
We will be keen to support you in France to optimize your WT basis. For liability purposes, please could you sign our attached fee quote before we start the job?
Once we receive this, we will send you a list of supporting documents to be discussed and collected. Thank you in advance and we look forward to working with you.
Should you wish to discuss anything mentioned above, please do not hesitate to contact us,
BD in charge
- Review during the first contact meeting
- Validation of all documentation
- Wealth Tax simulation with our internal software (EIC)
- Calculation of Tax Reduction
- Selecting an approved investment fund
- Review during the closing meeting
- Validation of the draft version during the closing meeting
- Wealth Tax Declaration
- Acknowledgement of receipt transferred to you, our client
IV. Relation with the Administration
- Subsequent follow-up with the Inspector in Charge until receipt of the tax notice