Wealth tax : The 5 year tax exemption rule

French wealth tax exoneration : the conditions

Under certain conditions, taxpayers newly settled in France benefit from a temporary french wealth tax exoneration on their real estate assets and rights located abroad. As a reminder, a taxpayer is liable for the real estate wealth tax if his or her net real estate assets (value of the property-debt) exceed 1.3 million euros.

Individuals who have not been domiciled for tax purposes in France for the five calendar years preceding the year in which they are domiciled for tax purposes in France are liable for the real estate wealth tax (IFI) on the basis of their real estate assets and rights located in France, without any employment requirement.

This regime applies for each year during which the taxpayer maintains his or her tax residence in France, i.e. until December 31 of the fifth year following the year during which the tax residence was established in France.

This measure applies regardless of the reason for transferring the tax residence (professional mobility, retirement, etc.).

French wealth tax exoneration: A complete guide to help you settle in France

The French tax system can be quite technical for a non tax resident. If you want to move to France, there is a list of reporting obligations for non-residents:

In this new comprehensive guide, we give you everything you need to know about the French wealth tax. Indeed, buying a beautiful second home in France can be stressful.  We’re here to help you every step of the way to make your move to France a great success. We have prepared this  following guide to help you navigate this exceptional tax applied to your real estate assets and propose solutions to reduce the burden.

The real estate wealth tax: a guide to better understand !

Among the property taxes in France, the IFI is very important. The ISF, the French wealth tax, has been replaced by a new tax, the IFI. This tax redefines the perimeter of the “wealth tax” in the French tax system. France is one of the best destinations for real estate investment, retirement and vacation. For example, you want to move to France and make our beautiful country your new home. From the French Riviera to the beautiful chalets nestled in the heart of the French Alps, you can find the perfect place and our goal is to help you with legal security and optimization. To avoid stress and to guide you in the best possible way, we can explain to you the rule of exemption from wealth tax

The pleasure of investing: achieving success by finding the best solution

To ensure that your investment will be a success, you must be well prepared for the different tax rules including the French wealth tax.  At Roche & Cie, our philosophy is to accompany you at every stage of your project by identifying the key points. As specialists in real estate for non-residents, we know that taxation, administrative and legal constraints are matters of concern for foreign investors. We can assist you in buying or renting a property, establishing the legal framework and accounting/preparing tax returns.