The wealth solidarity tax (ISF) was modified in December 2017 to become the “real estate wealth tax” (IFI), a tax based only on taxable real estate assets with a net value of more than 1.3 million euros. The purpose of this was to boost investment in French companies and promote job creation.
Those considered to be French residents will pay this tax on any worldwide property they own with a market value of over 1,300,000€, whereas non-residents will only be taxed on their French property.
The rate of tax varies depending on the market value of the property. For example: 1,300,001€- 2,750,000€ is taxed at 0.7%; 2,750,001€ – 5,000,000€ is taxed at 1%, and so on.
There are exemptions for the ownership of woods and forests.
Certain expenses concerning goods are deductible such as acquisition, repair and maintenance expenses, and certain taxes are exempt as well.
Similar to the income tax, there is a cap of 75% on the IFI tax.
The deadline to submit your IFI declaration is May 14, 2020.
At Maupard, we are able to file your declarations on time and ensure that you comply with all administrative regulations.
We have partners who can help you to invest in French start-ups and thereby reduce your Wealth Tax. You will become an entrepreneur in France! Welcome to the club! Please be aware of the following:
• The deadline for all formalities is 30th June 2018 and the tax reduction is only possible if the investment in the start-up is recognised in advance.
• Realistically it takes 1 month to complete this capital infusion
Our advisory role: At Maupard, we can link our clients with our financial partners (approved by the French State) to reduce your Wealth Tax.
These financial partners are responsible for searching quality startups and investing on your behalf in new French companies. At the end of the operation, those partners will issue a certificate to support your tax reduction.