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Capital gains tax
Inheritance, estate and gift taxes
Investment income
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth taxes
Other specific taxes
Annual exemption for the sales of shares not exceeding €25,830 for 2010 is available (however specific social levies apply from the 1st € for French residents). Sales in excess are taxed from the 1st € at an 18% tax rate, (or a 50% rate applies for individuals who are resident in a non-cooperative country or territory as from March 1st 2010).
Inheritance, estate & gift taxes
A liability to French inheritance and gift tax depends not only on the French tax residence position of the deceased/donor and of the beneficiary, but also on the French location of real estate and assets when the deceased/donor is not resident in France. The rates vary depending on the degree of relationship between the donor and the beneficiary.
Investment income
The expatriate's French tax residency status will determine whether investment income such as interest, dividends etc, will become liable to French income tax.
Dividends can be subject to income tax. A 40% allowance on dividends received is available for French residents for tax purposes for the calculation of the income tax at the progressive income tax rates, plus specific social levies. They are also entitled to a tax credit of 50% of the dividends received capped to € 115 / € 230 and to an annual allowance of € 1,525 / € 3,050.
Alternatively, the recipient of dividends can opt to be subject to a 30.1% flat rate (including the additional 12.1% social contributions). In this case, no tax allowance applies.
Local taxes
There are local taxes (dwelling, developed properties, undeveloped properties) to which an individual is liable in France.
Real estate tax
See 'capital gains tax' above
Social security taxes
(As at 1st January 2010)
'National Insurance Contributions'
|
Executive (Not contracted out) earnings per month € |
employer |
employee |
|---|---|---|
| Basis | ||
| Whole amount | 20.10% | 8.85% |
| 0-2,885 | 12.8% | 9.65% |
| 2,885-23,080 | 12.6% | 7.7% |
| 0-11,540 | 4% | 2.4% |
| Whole amount minus 3% | 8% |
Also:
Non executive
Self employed
Non-employed
Specific social levies
French residents are subject to 12.1% social contributions - 8.2% contribution (called CSG), 0.5% contribution (called CRDS) and 2.3% and 1.1% social levies - on their property income, capital gains, as well as on their fixed interest securities, dividends. Part of the CSG (5.8%) is deductible from the taxable income the year after payment of the contribution, except when the 30.1% rate applies on dividends.
Stock options
The advantages of such schemes are taxed as part of employment income at the progressive rates, unless they qualify for specific tax and legal regime providing for:
Tax is levied at the time of the sale of shares except the 10% employer special social security contribution which is levied at the time of the grant of shares.
Capital gains in excess are treated as capital gains on shares.
Wealth tax
Individuals who become French residents are taxable on their worldwide assets (real estate, shares, bank accounts etc) if the net value
of these global assets exceeds €790,000 on January 2010.
|
Fraction of net taxable value of assets (€) |
Rates |
|---|---|
| < 790,000 | 0.00% |
| From 790,000 to 1,290,000 | 0.55% |
| From 1,290,000 to 2,530,000 | 0.75% |
| From 2,530,000 to 3,980,000 | 1% |
| From 3,980,000 to 7,600,000 | 1.3% |
| From 7,600,000 to 16,540,000 | 1.65% |
| > 16,540,000 | 1.8% |
Other specific taxes
There are no other specific taxes relating to expatriates in France.
Information about France:
Last updated April 2010
This information has been provided by Grant Thornton Société d'Avocats, a member firm of Grant Thornton International Ltd and is for informational purposes only. Neither Grant Thornton Société d'Avocats nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.
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