Shown below is a summary of our understanding of the principle changes.
Inheritance Tax Rates per beneficiary
(Droits de succession) - there is no inheritance tax between spouses or couples with a PACS.
Between parents and children
|Less than €100,000||0%|
|The next €8,072||5%|
|€8,072 to €12,109||10%|
|€12,109 to €15,932||15%|
|€15,932 to €552,324||20%|
|€552,324 to €902,838||30%|
|€902,838 to €1,805,677||40%|
|Less than €15,932*||0%|
|The next €24,430||35%|
* Tax-free in certain circumstances; e.g. had lived with the deceased over the previous 5 years and is disabled.
Between other relatives (to 4th degree)
|Less than €7,967||0%|
Between unrelated persons (i.e. step-children)
|Less than €1,594||0%|
Social Charges (Contributions Sociales)
|Contribution sociale généralisée (CSG)||8.2% max.|
|Contribution au remboursement de la dette sociale (CRDS)||0.5%|
|Prelevement Social (PS)||5.4%|
The first two are taken on all forms of income and all four apply to unearned income and capital gains.
Income Tax Bands (Impôt sur le Revenu)
|Up to €9,710||0%|
|€9,710 to €26,818||14%|
|€26,818 to €71,898||30%|
|€71,898 to €152,260||41%|
|€152,260 and above||45% *|
(Net taxable income per part after 10% allowance on earned and pension income).
For those over the age of 65, there is an extra tax-free allowance of €2,332 if total income does not exceed €14,630 and of €1,166, if total income is between €14,630 and €23,580.
*Additional tax for those with taxable income of over €250,000 per person in the household: 3% of taxable income rising to 4% for those over €500,000 per person.
Wealth Tax bands (Impôt sur la Fortune)
Wealth tax is payable by any household with taxable assets of over €1.3m on 1st January each year.
Taxation is on a banded system as follows:
|Up to €800,000||0%|
|€800,001 to €1,300,000||0.50%|
|€1,300,001 to €2,570,000||0.75%|
|€2,570,001 to €5,000,000||1.00%|
|€5,000,001 to €10,000,000||1.25%|