New Year, New Opportunities with the New Wealth Tax
Good news for those looking to invest in the luxury property market in France. As of January 1, 2018, there will be the new implementation of France’s new Wealth Tax also known as Impôt sur la fortune immobilière (IFI). President Macron has announced that this tax has been updated from the existing Impôt de solidarité sur la fortune (ISF) so now investors will be taxed solely on their real estate assets, not on other items in their wealth portfolio such as bank and financial investments, securities or other financial assets.
The breakdown is as follows; on any real estate asset worth €1.3 million or more, IFI will apply a 0.5 percent rate to the net value of property above €800,000. Therefore, the tax is only applicable to the amount of equity an investor has in the property. As an example, if an investor owns a €1.3 million property, and has €900,000 equity in it, they will pay 0.5 percent tax on the €100,000 above €800,000. It is no secret that France has been one of the most popular locations worldwide for a second property investment and with this new implementation about to come into effect, an investor may now save thousands in tax as a result of the IFI. With the current property market holding stable, especially in the Cote d’Azur, 2018 should be very interesting to see how the new Wealth Tax changes overall prices. More sales mean more business opportunities within France. To be connected with our award-winning luxury property partners contact: Info@experiencethefrenchriviera.com
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