Roche & Cie

Newsletter Heritage July 2017

28 Jul 2017

The housing tax reform. In three stages.

While it was expected that only the most modest households would benefit from the reduction in the housing tax, in the end all French people may benefit from a reduction in their housing tax by 2018. The government announced that By 2018, the housing tax will be reduced by one third, to be finally totally eliminated within three years for 80% of the French.

The President of the Republic also spoke of the possibility of a total abolition of the housing tax for the 20% of French people who would still be subject to it.

Beyond this reform, the Government wishes to initiate a global reflection on the recasting of local taxation.

The transformation of the wealth tax (ISF) implemented sooner than expected.

From 1 January 2018, the French wealth tax should become a tax on real estate assets. Exemptions from transferable securities, including those resulting from life insurance, are expected to result in a shortfall of € 3 billion. The 30% tax rebate on the main residence and the scale of the ISF will be maintained.

Levy on savings income: life insurance would retain its specificity

In 2018, income from savings will be subject to a single flat-rate levy (income tax and social security contributions) at a rate of around 30%. Finally, life insurance would retain its current tax regime except for new investment flows that will exceed € 150,000. Tax-exempt products such as the savings book called Livret A will always be exempt.

The calendar of updates to the 2017 tax notices

The tax administration has just updated the calendar and modalities of transmission of the income tax notices

Date put online in your personal spaceDate of receipt by post of your paper notice if you have not opted for online notice
You are non-taxable or you receive a refundFrom July 24By September 4
You are taxable and not paying monthlyFrom July 31By August 25
You are taxable and pay monthlyFrom July 18By September 7


Payment deadline

The payment deadline is on your taxpayer’s tax notice. In the general case, this is done by 15 September at the latest for non-monthly taxpayers

Having a spring in Your Garden

As drafted by the Water Regulatory Act of 1898, article 642 of the Civil Code states that “a person who has a source in his underground may always use water at his will within the limits and for the purposes of his inheritance “.

The owner of a spring, therefore, is also the owner of the water and can:

  • sell it to a neighboring landowner, for example;
  • modify the natural flow,
  • absorb the whole

However, he cannot use it in such a way as to deprive the inhabitants of a commune, village or hamlet of the water they need, but he may claim compensation, paid by experts, if the inhabitants do not prescribed the free use.

On the other hand, neighboring owners may have acquired by 30 years the right to use this water through the construction of permanent and visible structures used to use or pass water on their land. The owner of the source should not compromise their use of water by neighboring care.

On the other hand, if the source forms a stream at the exit of the land, it is public and it cannot be the sole and private property of the owner of the emergence fund. This is then reduced to the condition of a simple user whose right is limited to the use of water for agricultural or industrial purposes.

Muriel Brault

You can download this information notice here

Cabinet Roche & Cie, Chartered english speaking accountant in Lyon, France.
Specialist in Real estate and non-résidents taxation.