What are the tax implications of owning French property?
Apart from annual property taxes, you should consider the possible impact of French income tax, French wealth tax and French inheritance tax. • French income tax. A UK resident who lets out a property in France will have a UK liability to income tax but will be entitled to credit against his UK tax bill for the French tax which he has paid on his French rental income. If a non-resident does not submit a French tax return, the French tax authorities can charge interest and various tax penalties. • French wealth tax • French inheritance tax. In France transfers between husband and wife are not exempt from French inheritance tax. The remoter the heir is from the deceased, the higher the rate of tax. For example, a rate of 60 per cent applies between unmarried couples. Always consult a French tax specialist on the most suitable solution to suit your individual circumstances. We recommend that you consult with Stephen Smith of Stephen Smith (France) Ltd (On contact quote ref FPSAMJ) who is
