Taxes in France
Transaction and registration taxes
Buyers pay real estate registration fees of 5.81%. When purchasing shares in a company, the assets of which mainly consist of real estate, registration is 5.00% of the share value.
Notary fees range from 0.825% to 4.000%, plus 20% VAT.
Ownership, residence and rental taxes
Owners pay real estate tax (taxe foncière) and residence tax (taxe d'habitation) annually. Real estate tax
Property rental tax is calculated based on the rental income after deducting expenses and ranges from
Wealth and capital gains tax
Wealth tax (Impôt de Solidarité sur la Fortune or ISF) is payable by individuals with assets over €1.3M, on their assets over €800,000 at progressive rates.
value of assets,
Owners may be exempt from capital gains tax on property (impôt sur les
There are tax breaks
As of 1 January 2013, there is an additional tax
Inheritance tax (impôt sur les successions) is calculated on the value of property. There are no taxes on real estate transferred between spouses. Charges for the transfer of property from parents to children range from 5% to 45%. There are tax deductions available reaching €100,000. Inheritance tax is not charged on property owned by a company. Instead, the company pays the taxes that exist in the country of incorporation.
Income and corporate taxes
Income tax ranges
Corporate tax rate in France is 33.33%.
Disclaimer: the information in the above article is for reference and may be subject to change over time. Persons interested in exact calculations should contact a certified tax specialist in this country before purchasing property.
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