5 ms·

Moreover, are you not exposing yourself to French tax liabilities on your income and assets if you own property in France?

cm2187 6y ago
Not a tax lawyer but I believe only on the income and assets in France. So I assume you would be paying the French wealth tax on the value of the castle.
- p_l 6y ago
  Most of the world considers only income and assets that happen to be inside the country to be taxed by that country, yes.
  - julienchastang 6y ago
    Except for the US which will tax its citizens anywhere no matter where they derive their income and assets. It is a leading reason why a number of Americans renounce their US citizenship. [1]https://www.wsj.com/amp/articles/more-americans-are-renouncing-their-citizenship-11602840602 https://www.wsj.com/amp/articles/more-americans-are-renounci...
    - angry_octet 6y ago
      The difference with America is they tax you if you're a citizen, regardless of whether you are abiding (tax resident) there.
    - cromka 6y ago
      Citizens, but not the property owners, which is what is being discussed here.
  - angry_octet 6y ago
    No, not so! A number of countries consider worldwide income. Generally it must have been taxed somewhere, and in a place with a tax treaty with your primary residence, or it will get taxed as foreign income. It gets even more complicated with capital gains or losses, and different rules for how losses can be moved between financial years.
    - nopzor 6y ago
      a number of countries? really? the usa is the only g7 country to do so. we (the usa) is in good company with countries like libya and north korea...
      - ampersandy 6y ago
        No, there's an important distinction here. Many countries tax world-wide income, but USA is one of the few that taxes your non-US income even if you are not considered a resident for tax purposes. For example, if you are a Canadian expat and notify the CRA, you do not have to file a tax return at all unless you earn income from Canada. However, if you are a US expat, you still must file US taxes each year (and pay the difference between my local taxes vs. what you would have owed in the US).
        angry_octet 6y ago
        Exactly. If you live in a high tax / high social benefit country it isn't so bad, but if you live in a no tax (but high income, high cost) country like the UAE it would be painful. The Foreign Earned Income Exclusion is like $100k but that isn't so much in some countries. Luckily US income taxes are quite (scandalously) low. (And if you live in the UAE that US passport will be really valuable if you need to avoid having you hand chopped off for pissing off the wrong people.)
        compsciphd 6y ago
        US Income taxes are low? take someone who makes a million+ dollars in california. Their marginal rate is 50% (37% federal + 13% CA, and with the note that the SALT limits due to Trump, dont really get them 37% back on the state tax anymore). compare this to most european countries where your income tax rate at the top is 50% or less. now, they have other taxes they pay (social and the like) outside of income taxes, but so does the US. FICA and ss fees also "taxes" in a way.
        vidarh 6y ago
- guerby 6y ago
  For 3.3 millions EUR you would pay about 15kEUR/year as "Impôt sur la Fortune Immobilière" on the value of the asset: https://www.impots.gouv.fr/portail/particulier/calcul-de-lifi https://www.impots.gouv.fr/portail/particulier/calcul-de-lif... Minus 30% if the asset is your regular home. There are other taxes of course, this is only the "wealth" one.
  - laurent92 6y ago
    IFI, yes, 15k€ + Taxe d’habitation (city tax), 10-20k€ if it is proportional (depends on sqm and salary, and decreasing with children). + Taxe foncière (land tax), same amount as previous. But French people earn about twice as less due to taxes, so you don’t have much competition from French buyers ;) I’m not a lawyer, just a big house owner. Who got rich abroad obviously.
    - guerby 6y ago
      Note: taxe d'habitation is being phased out in the coming years, it's already 0 for about 80% of taxpayers this year.

cm2187 6y ago

Not a tax lawyer but I believe only on the income and assets in France. So I assume you would be paying the French wealth tax on the value of the castle.

p_l 6y ago
Most of the world considers only income and assets that happen to be inside the country to be taxed by that country, yes.
- julienchastang 6y ago
  Except for the US which will tax its citizens anywhere no matter where they derive their income and assets. It is a leading reason why a number of Americans renounce their US citizenship. [1]https://www.wsj.com/amp/articles/more-americans-are-renouncing-their-citizenship-11602840602 https://www.wsj.com/amp/articles/more-americans-are-renounci...
  - angry_octet 6y ago
    The difference with America is they tax you if you're a citizen, regardless of whether you are abiding (tax resident) there.
  - cromka 6y ago
    Citizens, but not the property owners, which is what is being discussed here.
- angry_octet 6y ago
  No, not so! A number of countries consider worldwide income. Generally it must have been taxed somewhere, and in a place with a tax treaty with your primary residence, or it will get taxed as foreign income. It gets even more complicated with capital gains or losses, and different rules for how losses can be moved between financial years.
  - nopzor 6y ago
    a number of countries? really? the usa is the only g7 country to do so. we (the usa) is in good company with countries like libya and north korea...
    - ampersandy 6y ago
      No, there's an important distinction here. Many countries tax world-wide income, but USA is one of the few that taxes your non-US income even if you are not considered a resident for tax purposes. For example, if you are a Canadian expat and notify the CRA, you do not have to file a tax return at all unless you earn income from Canada. However, if you are a US expat, you still must file US taxes each year (and pay the difference between my local taxes vs. what you would have owed in the US).
      - angry_octet 6y ago
        Exactly. If you live in a high tax / high social benefit country it isn't so bad, but if you live in a no tax (but high income, high cost) country like the UAE it would be painful. The Foreign Earned Income Exclusion is like $100k but that isn't so much in some countries. Luckily US income taxes are quite (scandalously) low. (And if you live in the UAE that US passport will be really valuable if you need to avoid having you hand chopped off for pissing off the wrong people.)
        compsciphd 6y ago
        US Income taxes are low? take someone who makes a million+ dollars in california. Their marginal rate is 50% (37% federal + 13% CA, and with the note that the SALT limits due to Trump, dont really get them 37% back on the state tax anymore). compare this to most european countries where your income tax rate at the top is 50% or less. now, they have other taxes they pay (social and the like) outside of income taxes, but so does the US. FICA and ss fees also "taxes" in a way.
        vidarh 6y ago
guerby 6y ago
For 3.3 millions EUR you would pay about 15kEUR/year as "Impôt sur la Fortune Immobilière" on the value of the asset: https://www.impots.gouv.fr/portail/particulier/calcul-de-lifi https://www.impots.gouv.fr/portail/particulier/calcul-de-lif... Minus 30% if the asset is your regular home. There are other taxes of course, this is only the "wealth" one.
- laurent92 6y ago
  IFI, yes, 15k€ + Taxe d’habitation (city tax), 10-20k€ if it is proportional (depends on sqm and salary, and decreasing with children). + Taxe foncière (land tax), same amount as previous. But French people earn about twice as less due to taxes, so you don’t have much competition from French buyers ;) I’m not a lawyer, just a big house owner. Who got rich abroad obviously.
  - guerby 6y ago
    Note: taxe d'habitation is being phased out in the coming years, it's already 0 for about 80% of taxpayers this year.