The French government is preparing to impose higher taxes on the wealthy, with potentially big impacts on British expats living in the country. It has been announced that this year France will impose tough new tax rules upon the owners of property worth at least €1,300,000 and to UK trusts. Both will have to pay 1.5% tax.
The owner of assets worth at least €1, 310,000 will pay:
Between €800,000 and €1,310,000: 0.5%
Between €1,310,000 and €2,570,000: 0.7%
Between €2,570,000 and €5,000,000: 1%
Between €5,000,000 and €10,000,000: 1.25%
More than €10,000,000: 1.5%
Any expats that fall into the above categories will also be hit by increases in capital gains tax and inheritance tax.
French Prime Minister Jean-Marc Ayrault is also hoping to lower the legal limit of cash transactions from €3,000 to €1,000 for those who pay tax in the country. A consultation on the plans is likely to progress swiftly to make this law by the end of the year. This will apply both to French residents and to British expats living in France.
The overlap between French and British tax systems can mean that in certain circumstances, British expats living in France can mount a challenge to the French tax authorities if they can prove that they are caught between the two systems.