Growing numbers paying wealth tax

THE NUMBER of people required to pay wealth tax in France has grown by about 4% this year, despite the economic crisis.

Provisional figures from the budget ministry show 562,000 people made a wealth tax declaration by the beginning of July, up from 539,000 at the same point last year.

The final, complete figures will be published in the new year, as overseas residents living outside the EU have until August 15 to complete their return.

According to Nicolas Sarkozy, France is the last country in the European Union to impose a specific tax on its wealthiest residents, called ISF or impôt de solidarité sur la fortune. This year it is estimated to bring in €3.29bn, up from €3.13bn in 2009.

The president said in a TV interview earlier this month that there was no question of axing the wealth tax.

However he also said it was important that rich people did not leave France because of its taxation, and defended the bouclier fiscal, which caps an individual's personal taxation at 50% of their income.

Wealth tax has to be paid by all French-resident people with total net assets that were worth €790,000 or more on January 1 (following various deductions including 30% of the value of your main residence).

The tax is also paid by people resident elsewhere who have property in France worth more than the threshold amount.
The Connexion has a helpguide on wealth tax, priced €5, which can be downloaded here.

Photo: Dinostock - Fotolia.com