Financial Planning
Wealth Tax - Impôt sur la solidarité fortune (ISF)
Wealth tax in France is payable by resident households where the total worldwide assets exceed €790,000. For those who have become resident in France after the 6th of August 2008 there is an exemption from the tax on assets located outside of the country for a five year period.
The 2009 tax bands for ISF are as follows:
- Up to 790000€ 0%
- 790,000 to 1,280,000€ 0.55 %
- 1,280,000 to 2,520,000€ 0.75 %
- 2,520,000 to 3,960,000€ 1.00 %
- 3,960,000 to 7,570,000€ 1.30 %
- 7,570,000 to 16,480,000€ 1.65 %
- Above 16,480,000€ 1.80 %
Taxes due, bank loans and other debts are all deductible before the calculation of net assets. Those living in France are also entitled to a 30% allowance against the value of their principal home; this concession does not apply to second homes.
Certain types of Life Insurance policy (Assurance Vie) provide wealth tax exemption. Reductions in the calculation of assets can also be achieved by investment into French qualifying pension schemes.
If you would like further information on Assurance Vie products available to French residents for wealth management purposes, please go to Financial health-check
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