IL Postcard
Tax Relief
Date: 10/07/2007
October 7, 2007
Paris, France
More good news from the country with everything: A recent reform of France's inheritance laws has raised the threshold for gifts for each child from 50,000 euro ($69,300) to 150,000 euro ($207,929). Historically, French inheritance laws required children to be given certain rights after the death of a parent, often to the detriment of the surviving spouse who was faced with hefty death duties and the risk of being evicted from their property. This has also changed and a husband-and-wife tax exemption has just been introduced.
And owners of French vacation homes will be pleased to hear about a reform of the country's wealth tax. Wealth tax applies to the value of French assets worth more than 760,000 euro, and until the reform this tax was payable on 80% of the assets' market value. Now the tax applies to just 70% of the market value. Properties worth 1 million euro or less therefore are exempt from this tax.
Best regards,
Maria Savage
International Living's European Consultant