Is Paying French Wealth Tax Optional?

As a non-resident, the French Wealth Tax is based on the equity in any properties that you own in France. There is an allowance of €1,3m and if you have more equity than this allowance, then you will pay Wealth Tax annually on any equity greater than €800,000.

Having a mortgage secured against a property, by default means that you have less equity in the property. In fact some banks will offer 100% mortgages, reducing your equity to zero.

If you’re buying your first property in France, then it’s worth considering that you might buy a second property at some stage in the future. This could be as an investment, or perhaps to have properties in different parts of the country, e.g. in the French Alps and on the coast. The equity in both properties would then count towards the French Wealth Tax

(It’s important to seek independent tax advice before deciding how to structure your property purchase)

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