French Wealth Tax: A Guide for Non-Residents

Introduction

The French wealth tax, known as the Impôt de Solidarité sur la Fortune (ISF), was introduced in 1982 as a way to raise revenue from France's wealthiest citizens. The tax is levied on individuals with a net worth of over €1.3 million ($1.4 million USD) and is assessed on the value of their assets, including real estate, financial investments, and business interests.

Exemptions and Thresholds

The wealth tax is only payable on real estate assets valued over €13 million ($14 million USD), but the tax-free threshold is actually set at €800,000 ($860,000 USD). This means that individuals with a net worth of less than €800,000 are not liable for the tax.

Rates and Bands of Wealth Tax

The tax bands and rates of taxation applicable for 2022 and 2021 assessments are shown below:

• 0% on assets up to €800,000
• 0.5% on assets between €800,000 and €1.3 million
• 0.75% on assets between €1.3 million and €2.57 million
• 1% on assets between €2.57 million and €5 million
• 1.25% on assets between €5 million and €10 million
• 1.5% on assets over €10 million

It's important to note that these rates are subject to change each year, so it's always a good idea to consult with a tax professional to determine your specific tax liability.