French Tax Rates 2023
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Income Tax Scale applicable to 2022 Income
Impôt sur le revenu (CGI 197 I-1)
| Band of Income (€) | Tax Rates (%) | ||
| Allowance | to | 10,777 | 0.00 |
| 10,777 | to | 27,478 | 11.00 |
| 27,478 | to | 78,750 | 30.00 |
| 78,750 | to | 168,994 | 41.00 |
| In excess of | 168,994 | 45.00 | |
Pensions and salaried income receive an allowance of 10% up to a maximum of €4,123 for pensions and €13,522 for salaried income. There is an age allowance for those over 65 with an income lower than €26,400. The above is then divided into the number of “parts” of the household, further reducing your income tax liability.
2022 Property Wealth Tax Scale and Limit
Impôt sur la fortune Immobilière (CGI 977)
On value of buildings (and funds invested in such) on 1st January for those with assessable assets above €1,300,000. Payable in June
|
Taxable Wealth (€) |
Tax Rates (%) |
||
|
Allowance |
to |
800,000 |
0.00 |
|
800,000 |
to |
1,300,000 |
0.50 |
|
1,300,000 |
to |
2,570,000 |
0.70 |
|
2,570,000 |
to |
5,000,000 |
1.00 |
|
5,000,000 |
to |
10,000,000 |
1.25 |
|
In excess of |
10,000,000 |
1.50 |
|
There are allowable deductions for wealth tax, such as 30% of the value of your principal residence.
Capital Gains Tax
Impôt sur les plus-values
Capital Gains are on savings and investment income are generally assessed the same way as earned income.
This tax is not applicable to a French principal private residence. Tax on property is 19% and CSG at 17.2%.
Investment property can be sold free of Capital Gains Tax after 22 years (though remains assessable to CSG for up to 30 years). There is a further tax on property gains above €50,000 ranging from 2-6%.
Inheritance Tax Rates
Droits de succession
The rates & allowances shown are per beneficiary
Between Spouses & Partners in a PACS (CGI 777-TII)
Applied only to lifetime transfers (transfers on death, between spouses, are exempt) (CGI 790-E&F)
|
Band of Value (€) |
Tax Rates (%) |
||
|
Allowance |
80,724 |
0.00% |
|
|
The next |
8,072 |
5.00 |
|
|
8,072 |
to |
15,932 |
10.00 |
|
15,932 |
to |
31,865 |
15.00 |
|
31,865 |
to |
552,324 |
20.00 |
|
552,324 |
to |
902,838 |
30.00 |
|
902,838 |
to |
1,805,677 |
40.00 |
|
In excess of |
1,805,677 |
45.00 |
Between Parents and Children (CGI 777-TI)
|
Band of Value (€) |
Tax Rates (%) |
||
|
Allowance |
100,000 |
0.00 |
|
|
The next |
8,072 |
5.00 |
|
|
8,072 |
to |
12,109 |
10.00 |
|
12,109 |
to |
15,932 |
15.00 |
|
15,932 |
to |
552,324 |
20.00 |
|
552,324 |
to |
902,838 |
30.00 |
|
902,838 |
to |
1,805,677 |
40.00 |
|
In excess of |
1,805,677 |
45.00 |
Between Grandparents & Grandchildren (€) (CGI 790-B)
The tax bands and rates are exactly the same as for those between parents and children, as detailed above.
The allowances, however, are significantly lower, as follows:
|
Grandparent |
31,865 |
|
Great-grandparent |
5,310 |
Between siblings (€) (CGI 777-TIII)
|
Allowance |
*15,932 |
0.00% |
|
The next |
24,430 |
35.00% |
|
Over |
24,430 |
45.00% |
* Where the siblings were living together 5 years before deathand the deceased was disabled, the tax free allowanceincreases.
Between other relatives (to 4th degree) (€) (CGI 779-V)
|
Less than |
7,967 |
0.00% |
|
Over |
7,967 |
55.00% |
Between unrelated persons (€) (CGI 778-IV & 779-II)
|
Less than |
1,594 |
0.00% |
|
Over Handicapped person |
1,594 159,325 |
60.00% 0% |
Inheritance tax allowances are reset every 15 years
This information was current at of the end of December 2022 The information contained in this document is for information purposes only and should never be acted upon without professional advice. Kentingtons can accept no responsibility whatsoever for losses incurred by acting on the information contained within this document.
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