Before you start – do your homework
Before starting the property buying process, it’s important to be aware of the different tax implications of each country. The way tax is structured varies from country to country; your worldwide property portfolio, how you purchase property, and your overall wealth will have an impact on the best way to structure your purchase in terms of tax efficiency.
Our team of expert brokers can guide you on the tax implications depending on where you are buying property in Europe, and can put you in touch with our trusted tax specialists for advice tailored to your individual circumstance.
A Tax Example – France
When buying a property in France, there are a number of tax considerations to be aware of. As a foreign national who directly or indirectly owns property in France, you will be subject to an annual tax equal to 3% of the fair market value of the property. You will also be liable for stamp duty but this charge is very small for property in France.
Individuals resident in France and non-residents with assets in France are taxed on the basis of their assets as of 1 January each year. Wealth tax is known as ISF (Impôt de Solidarité sur la Fortune). If the household total net wealth is below €1.3million, no wealth tax is due and no return is required.
For those with assets in excess of €1.3million, the rates and thresholds below apply.
|€0 - €800,000||0%|
|€800,000 - €1,300,000||0.50%|
|€1,300,000 - €2,570,000||0.70%|
|€2,570,000 - €5,000,000||1%|
|€5,000,000 - €10,000,000||1.25%|