Luxury Real Estate

Courtesy of: Nicola Christinger of HomeHunts

Changes to rules concerning foreigners coming to work in France have further enhanced their favourable tax status and broadened the scope of those who are eligible – provided they have not been French tax residents in the five years preceding their new appointment.

Under the old regime, the tax authorities allowed certain categories of employees and officers temporarily assigned to work in France to be exempt from tax, for a maximum period totaling six years.

Under the new regime, more people benefit as it now includes those who are recruited directly from abroad to any company established in France (not just internal mobility within international groups as before). Those who are eligible now have a choice between either:

1. a total exemption of the “impatriation” bonus, or

2. a lump sum exemption of 30% of their salary. In addition, all benefit from a total exemption (not 20% as before) of their “expatriation” bonus, provided the activity (travel, etc) is directly and exclusively in the interests of their employer/host entity in France. These latest provisions apply (retroactively) to those who relocated on or after1 January 2008, and apply for a maximum duration of six years.

French wealth tax: those who have not been French tax residents in the five previous tax years will also be exempt from wealth tax on their non-French assets up to the 31 December following the fifth anniversary of their arrival in France. For more information on any tax issue in France please email us and we will be happy to assist: info@home-hunts.com