Annual tax on market value (3%)

This tax of 3% is calculated on the market value of property located in France and is payable by French and foreign companies which:

Hold a stake in another company (incorporated companies, partnerships, non-commercial companies and foundations), trust or similar institution;
Are predominantly real estate companies, i.e. more than 50% of their assets are real estate assets;
Are the owners, either directly or via an intermediary company, of property located in France, or are the holders of rights in rem in property located in France.

This tax is calculated as 3% of the market value of the properties or rights in rem over these assets.

It must be declared each year before 15 May using French tax form no.2746.

This tax is primarily intended as a deterrent and was introduced to combat certain legal constructions used to evade the wealth tax.

There are also numerous exemptions, including submission of form no.2746 to disclose the natural persons who are the ultimate beneficiaries in the chain of holdings (which facilitates verification of real estate wealth tax returns).