It is for each household to assess and determine for themselves whether or not they consider they are liable to pay wealth tax. There is no need for a professional valuation to be made. To some extent, therefore, there is an element of voluntarism in the declaration of tax liability!
However, in the event that the tax authorities decide that you are liable to pay wealth tax, they are entitled to collect arrears of payment over the following 10 years. The French tax authority does have sight of all property transactions in the country so will be aware of the price you paid for a property.
In , an interesting court case demonstrated very clearly the determination of the tax authorities to take on those who underestimate their assets, which you can read about at Wealth Tax Property Valuation Rejected. The declaration must be made by in accordance with the timetable for your income tax declaration. You need to list on the form those investments and payments which you consider give you an entitlement to a reduction in your wealth tax liability.
There is no need to provide supporting documentation. If you are late in making the declaration, then an interest charge of 0. These same interest rate penalties apply if the tax office consider you have inadvertently underestimated your wealth. Next: French Capital Gains Tax. Back: Rate of Wealth Taxation in France. Menu French-Property. Overview 2. Top Tips 3. Income Tax Liability 4. Income Tax Return 5.
Calculating Income Tax Liability 6. Payment of Income Tax 7. Social Security Contributions 8. Taxation of Investment Income 9. Local Property Taxes French Wealth Tax Capital Gains Tax Gifts Tax Tax Inspection For the latest in-depth analysis, subscribe to our news service at France Insider. If you require advice and assistance with the purchase of French property and moving to France, then take a look at the France Insider Property Clinic. Guide to French Taxes Wealth Tax Declaration It is for each household to assess and determine for themselves whether or not they consider they are liable to pay wealth tax.
