Monday, 16 May 2011

Monday, 16 May 2011

French Tax Reforms 2011



The Finance Bill covering the latest tax reforms in France was presented to the Council of Ministers on Wednesday 11th May 2011.






Amongst the measures proposed is a new tax on second homes owned by foreigners :




From 1st January 2012, non-residents who own a second home in France will be charged an annual tax of 20% of the cadastral value of the property. This is like a second Taxe Foncière.
Expatriates overseas for professional reasons will not be affected.






Some good news - Wealth Tax



Abolition of the Bouclier Fiscal, except for people on very low incomes whose Taxe Foncière on their main home exceeds 50% of their income. The threshold is increased to €1.3m. Wealth between €1.3m to €3m taxed at 0.25%. Over €3m taxed at 0.5%.






The declaration of wealth tax is usually due by mid June, but the deadline is being extended to end of September.
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