Wealth tax – what is the situation in France?
New reforms in the law by President Nicolas Sarkozy regarding Wealth tax will immediately benefit French and British property owners. Previously, the increase in property values had made many modest home owners liable to wealth tax and often left many residents with no alternative but to sell the property. However, Sarkozy has raised the allowance on the principal residence by 30% to compensate for property price inflation. This only applies to those wishing to live in France on a permanent basis and only takes in to account the equity on the property. It is possible to deduct debts and some business assets which are classed as exempt. If you would like to reduce it further or avoid it altogether you can do this easily in England, however the plans for this must be put into place from the outset of the purchase and before the first tax return is submitted in France.
