Back in October 2017, President Macron’s reforms of this notorious wealth tax passed into law and have now come into effect, much to the delight of many British expats.
The impôt de solidarité sur la fortune (ISF) was previously an annual levy of up to 1.5% on property and assets over €1.3m held worldwide by residents.
Whilst Macron’s reforms result in no changes to the rates and thresholds themselves, the tax will now apply almost exclusively to the property and assets of French residents only.
Fleur Buckley, the Property Services Manager of FrenchEntree, comments on the amendments: “The implementation of these new tax changes on 1st January 2018 is certainly welcomed by expatriates with property and assets in France. It will bring a renewed surge of interest from buyers and investors alike into some of the prime real estate markets in France, including Paris, the Alps and, of course, Provence-Cote d’Azur.
“This comes at a time when agents are particularly proactive at bringing new properties to market in the anticipation of gearing up for spring interest from new buyers.”
One market set to benefit from these tax changes is the French capital of Paris. Typically, demand for property in Paris is greater than the supply, but this will start to balance this year, with the buyers’ market becoming more competitive once again, with the easing of the wealth tax.
Whether you decide to buy in Paris or elsewhere in France, we have your new place abroad covered with our market-leading Overseas Property Insurance, which is available to expats or holiday home owners.
Get more information on our specialist insurance, along with quick quotes and cover, through our website: https://www.insuremyvilla.com