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Wealth Tax

 
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Stephen



Joined: 19 Oct 2020
Posts: 91

PostPosted: Fri Aug 05, 2020 7:41 pm    Post subject: Wealth Tax Reply with quote

Do you own a valuable property in France and would like to know whether it is possible to avoid payment of French wealth tax?

If you are not resident in France the usual way to avoid French wealth tax is to reduce the net asset value of your property in France. One way to do this is to take out a mortgage to purchase the French property. The value of the property for the purposes of French wealth tax will be the true market value of the property less the amount of the outstanding mortgage. Typically this is the simplest way to bring any property in France below the French wealth tax threshold.

Another way to eliminate French wealth tax is to purchase the French property as a group so that the value of the asset is shared between several shareholders. Furthermore, if each individual has a minority shareholding it would be possible to devalue the value of the shares by about 20% to take into account the lack of control on the asset.

You could even eliminate French wealth tax by having the assets defined as a professional assets. For instance, if the property is let out furnished on a professional basis then the assets would not be liable to French wealth tax.

Because the position can be complicated, each case must be assessed on its merits and we cannot give any definitive answers in a particular case without full information. If you are domiciled in France other solutions may also be available.
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