Today is:
Service France
Please note that taxation and property are complex subjects and you should not take or refrain from taking any step without full independent advice on the particular facts of your case. The content of this article is of a general nature and no liability is accepted in connection with it.
If you are moving to, or buying property in, France, you should at least be aware of some or all of the following taxes. Ideally, you should have found out which will affect you, and if so, how. Many people think that ignorance is bliss. To an extent it is, until le Fisc (the French taxman) catches up with you, which it usually does. In France, just as in the UK, “nul n’est censé ignorer la loi” – ignorance of the law is no excuse.
This is not just a negative thing! Often, judicious tax planning before you move (or before you buy) can save more tax than advice on it costs, either immediately or in the future.
The taxes – (please note that this list is
not comprehensive, as some of the more esoteric taxes which
are unlikely to be encountered are omitted):
|
The tax in French |
UK equivalent (if there is no direct UK equivalent, translation is in italics) |
Interesting fact |
|
Contributions sociales |
National insurance |
Imposed on all forms of income and capital gains |
|
Droits d'enregistrement |
Stamp duty |
The usual rate is far higher than in the UK |
|
Droits de mutation à titre gratuit |
Gifts tax |
May affect gifts made by French resident OR to French resident OR of French-based assets |
|
Droits de succession |
Inheritance tax |
Payable by heirs - not by estate as in UK |
|
Impôt de 3% [1] |
3% tax on value of real estate owned by certain companies |
Anti-avoidance measure penalising certain offshore companies |
|
Impôt de solidarité sur la fortune |
Wealth tax |
Payable annual on your assets, even if you have done nothing with them |
|
Impôt sur le revenu |
Income tax |
UK income is often subject to French income tax if you are French resident |
|
Impôt sur les plus-values |
Capital Gains Tax |
French land subject to French CGT and UK CGT if you are UK resident |
|
Impôt sur les sociétés |
Corporation tax |
Not all French companies are subject to French corporation tax |
|
La contribution annuelle sur les revenus locatifs |
Annual contribution on rent |
Only applies to property at least 15 years old |
|
La redevance audiovisuelle |
TV licence |
One licence required per residence |
|
La taxe sur les salaries |
Salary tax |
Applies to French employers |
|
La vignette auto |
Car tax disc |
Does not usually apply to private individuals |
|
Précompte mobilier |
Equalisation tax |
To be abolished at end 2004 |
|
Taxe d'enlèvement d'ordures ménagères |
Rubbish collection tax |
Imposed in certain areas only |
|
Taxe d'habitation |
}Council tax |
Payable even if not French resident |
|
Taxe foncière |
||
|
Taxe locale d'équipement |
Construction tax |
Also imposed on extensions |
|
Taxe professionnelle |
Business rates |
May be assessed on those who cannot claim business reliefs |
|
Taxe sur la valeur ajoutée |
Value Added Tax |
A French invention, this is sometimes charged on the sale of real estate |
|
Taxe sur les locaux en Île-de-France |
Tax on Île-de-France region premises |
Does not apply to residential property |
|
Taxe sur les logements vacants |
Tax on empty property |
Applies in Antibes-Cannes-Grasse, Bordeaux, Lille, Lyon, Montpellier, Nice, Paris and Toulouse |
Sykes Anderson LLP has experience in advising on the effects of the above taxes.