British expats among those benefiting as Macron slashes French wealth tax
While Britons at home fear a swathe of tax increases in Philip Hammond’s November budget, many expats in France stand to benefit from the opposite – a significant tax cut.
On Tuesday President Emmanuel Macron’s reforms of France’s notorious wealth tax – the impôt de solidarité sur la fortune or ISF – passed into law, effective from January 1, 2018.
The tax as it stands involves a yearly percentage levy (of up to 1.5pc) on the wealth of residents whose global worth exceeds €1.3m (£1.15m).
Aside from various complex exemptions and caps, the tax is currently applied to property and financial assets worldwide. It is said to have prompted the exodus of 60,000 millionaires from France since 2000, many moving to Britain and Belgium. They may now return, tax experts predict.
Mr Macron’s reforms leave the rates and thresholds unchanged but the tax will now apply almost exclusively to French residents’ worldwide property only.
Careful use of mortgages alongside non-property investments could all but eliminate liabilities, tax planners say, and the extent of the cut is apparent in the fact that the French authorities anticipate a 70pc drop in revenues.
Estate agents are already talking of increased interest from those wishing to relocate.
Tim Swannie of Home Hunts, which sells French homes averaging €2m mainly to people in Britain, said demand at the higher end of the market was already strong, particularly in locations such as Paris, the Riviera, Bordeaux, and Provence - but that the tax announcement of the tax reduction has brought a surge of new interest.
"Inquiries for properties over €2.5m are at the highest level for 10 years," he said. "The tax changes are having a big effect. We are seeing more people wanting to relocate.”
British expats among those benefiting as Macron slashes French wealth tax
Vive la France!
While Britons at home fear a swathe of tax increases in Philip Hammond’s November budget, many expats in France stand to benefit from the opposite – a significant tax cut.
On Tuesday President Emmanuel Macron’s reforms of France’s notorious wealth tax – the impôt de solidarité sur la fortune or ISF – passed into law, effective from January 1, 2018.
The tax as it stands involves a yearly percentage levy (of up to 1.5pc) on the wealth of residents whose global worth exceeds €1.3m (£1.15m).
Aside from various complex exemptions and caps, the tax is currently applied to property and financial assets worldwide. It is said to have prompted the exodus of 60,000 millionaires from France since 2000, many moving to Britain and Belgium. They may now return, tax experts predict.
Mr Macron’s reforms leave the rates and thresholds unchanged but the tax will now apply almost exclusively to French residents’ worldwide property only.
Careful use of mortgages alongside non-property investments could all but eliminate liabilities, tax planners say, and the extent of the cut is apparent in the fact that the French authorities anticipate a 70pc drop in revenues.
Estate agents are already talking of increased interest from those wishing to relocate.
Tim Swannie of Home Hunts, which sells French homes averaging €2m mainly to people in Britain, said demand at the higher end of the market was already strong, particularly in locations such as Paris, the Riviera, Bordeaux, and Provence - but that the tax announcement of the tax reduction has brought a surge of new interest.
"Inquiries for properties over €2.5m are at the highest level for 10 years," he said. "The tax changes are having a big effect. We are seeing more people wanting to relocate.”
British expats among those benefiting as Macron slashes French wealth tax
Vive la France!
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