Holiday rentals news - New wealth tax exemption for expats in France

New wealth tax exemption for expats in France

Expatriates relocating to France are now exempt from the country's wealth tax for five years. Anyone who has moved to France since August 6 2008 will be able to benefit from the new rules.

The change to France's wealth tax (impôt sur la solidarité fortune) was introduced to try and change the country's image as a high tax destination, according to Internet French Property. The wealth tax exemption will apply until December 31 of the fifth year after the relocation to France.

New expatriates relocating to gites in France will be able to claim the concession regardless of their nationality. Neither will the country from which they moved affect the exemption.

However, existing expatriates who moved to France before August 6 2008 will not benefit from the changes. Likewise, if you were resident in France at any point during the past five years, left and subsequently returned, the exemption will not apply.

Wealth tax is payable in France if your net assets exceed 790,000 euros. However, the concession will only apply to assets held outside of France and those in the country will be liable to tax.

If you are resident and do not qualify for the exemption, then your worldwide assets will be taxed. If you are non-resident, then only assets held in France are included. More information on France's wealth tax can be found here.

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