Wealth Tax France Update for 2017

Written by on July 24, 2017 in Financial, Retirement, Tax

During election campaigning in France, President Macron stated that he wanted to review taxes and make reductions for businesses and individuals.

One of the most unpopular taxes in France is the wealth tax. Under current rules (2017) as a French resident, taxable wealth includes worldwide assets such as property, jewellery, cars and investments.

Several months into his reign and Macron seems to be keeping to his promise that he plans to rein in France’s wealth tax. The current structure imposes a 0.5% starting levy on assets over €900,000 (£762,000, $990,000), increasing gradually to a top rate of 1.5% to anything over €10m.

Under the new rules Macron is proposing, any non-property related wealth would be exempt from the tax.

What do wealth tax changes in France mean for expats?

“It makes using tools such as ‘contrat d’assurance vie’ far more attractive than before and will help France retain wealthier residents and attract new ones” says Jennie Poate, financial expert at Beacon Global Wealth. “An Assurance Vie is a wrapper that holds financial investments, like a Life Policy in some countries. The French name makes it sound like a life insurance policy but it’s not, it’s an investment product. For expats in Franec it can be a good way to maximise tax savings, capital is available for draw down and a variety of different fund options are available according to the risk the person wishes to take. This varies from interest bearing products to stocks and shares. In the future property investment may be less attractive as that will be included in the wealth tax calculation. The expectation is that investment into long term policies will rise dramatically if the option to reduce wealth tax by investment into an ‘Assurance Vie’ over property is available.”

If you need obligation free, independent financial advice in France, Jennie Poate of Beacon Global Wealth is happy to help. Contact jennie@bgwealthmanagement.net

The information on these pages is intended only as an introduction only and is not designed to offer solutions or advice. Beacon Global Wealth Management can accept no responsibility whatsoever for losses incurred by acting on the information on this page.

The financial advisers trading under Beacon Wealth Management are members of Nexus Global (IFA Network). Nexus Global is a division within Blacktower Financial Management (International) Limited (BFMI).All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licenced and regulated by the Gibraltar Financial Services Commission and bound by their rules under licence number FSC00805B

Related Articles

Three reasons to seek financial advice when you’re an expat in France

Whether you’re already in France or you’re considering a move to France, it’s natural to have worries and fears about your financial future. Research shows that you’re likely to gain peace of mind and to be significantly better off if you get professional advice about your long-term future financial goals and requirements. A study by […]

Continue Reading

When it comes to income tax in France good planning is essential

Talk of income tax in France is something that can cause the jitters. But if you’re thinking about buying a second home in France, or making a complete move, the advantages from a tax perspective may represent great value. Jennie Poate, Head of Operations, France for Beacon Global Wealth Management explains… Income tax in France There […]

Continue Reading

I’m an expat in France with a UK pension so where do I pay tax?

When it comes to paying tax, for UK expats in France, it can sometimes seem like a complicated process with rules for this and that. We answer some of the most common questions that UK expats ask when it comes to tax in France. Question: I moved to France last year. I have a teacher’s pension […]

Continue Reading

How to limit your inheritance liabilities in France by gifting

When it comes to managing your finances in France, knowing what the rules are is essential.  From tax to pensions, savings and investments and more, we look at the most common questions asked by expats. The process of gifting in France Question: I want to make a gift of cash of £20,000 to my son […]

Continue Reading

How to handle the annual tax return requirements in France

The annual tax return needs to be completed by May in France. Financial expert Jennie Poate explains how to complete the paperwork and what’s required, leaving you to enjoy the good life in France. Basic tax returns for expats in France Many British expats who are resident in France will have some income derived from […]

Continue Reading

Subscribe

If you enjoyed this article, subscribe now to receive more just like it.

Subscribe via RSS Feed

Comments are closed.

Top