Reminder : Wealth tax declarations

20 July 2020

In France, you are liable for wealth tax if the net value of your real estate assets exceeds €1.3 million.

You must declare :

  • Buildings (for personal use or for rent): houses, apartments and their outbuildings (garage, car park, cellar…),
  • buildings classified as historical monuments,
  • buildings under construction on 1 January 2020,
  • undeveloped buildings (building land, agricultural land),
  • buildings or fractions of buildings represented by shares of co-ownership real estate companies.

For French residents, you are required to declare your assets in France and abroad.
For non-residents, the wealth tax will only apply to their real estate located in France.

New residents benefit from an exemption on their real estate located abroad until the end of the 5th year following their installation in France.

Taxable assets

The tax base consists of all property, property rights, shares or company shares held by the taxpayer and up to the representative fraction of real estate.
Taxable assets are reported at their market value (market value).

Main residence: French residents benefit from a 30% allowance on their main residence.

Professional property: real estate necessary for the taxpayer’s main professional activity is exempt from wealth tax.

Wood and forests: wood and forests benefit from a partial exemption of 75%.

Deductible liabilities :

In general, debts existing on January 1 of the tax year relating to the acquisition of the property, repair, maintenance, improvement, construction, reconstruction or expansion expenses are deductible.

Tax debts: property tax, housing tax, and wealth tax itself is deductible for the calculation of the tax base.

Bank loans and debts: Bank loans and debts are deductible if they relate to the acquisition and other expenses of repair, maintenance, improvement, etc….

Wealth tax scale in France

Between 1 300 001 € and 2 570 000 € 0,7 %
Between 2 570 001 € and 5 000 000 € 1 %
Between 5 000 001 € and 10 000 000 € 1,25 %
Greater than 10 000 000 € 1,5 %

The wealth tax return must be drawn up on the initiative of the debtor if he considers that the net value of his assets exceeds the tax threshold of €1.3 million.

The declaration must be made before June 15. Thereafter, a tax notice is sent to the taxpayer at the end of the summer (payment deadline set at mid-September)..

The Team Roche & Cie

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