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Emmanuel Macron Politic: The relevant information you need to know regarding Taxes modifications

17/12
Expatriates News /
The new French president, Emmanuel Macron, in collaboration with the government, started to update and modify the taxes and “impôts” in France. Here is what you need to know for 2018.
  • Replacement of the wealth management tax (ISF Impôt sur la fortune) by the real estate assets tax (IFI Impôt sur la forture immobilière).

If the name changed, it does not really impact the owners who already pay the ISF on their real estate assets. The IFI will be calculated, as the ISF, on the value of the real estate assets higher than 1 300 000€ on the 1st January of each year.

The percentage of the IFI tax is the same than the one which was applied on ISF.

The professional real estate are not concerned by the IFI.

The reduction of 30% for the first/main home is maintained.

The main change is regarding the financial assets, as they are no longer considered for the calculation of the IFI.

 

  • The Pinel tax advantage and the zero rate mortgages are maintained with some modifications

The PTZ and the Pinel tax advantages are maintained, however, it should be only until 31 december 2021.

However, the new versions of these advantages will be concentrated in needed areas. For Exemple, regarding Pinel Law, it will concern the zones A, Abis and B1.

For the PTZ, the amount would not be higher than 20% of property purchase price.

 

  • The service apartment residences and service residences offer even more advantages

It is good news for the landlords who want to rent furnished properties. The article 10 of the finance law project expects to increase the maximum amount to benefit from the micro-bic regime. If the law is voted, the annual amount will increase from 33 200€ to 70 000€ for the furnished properties rental contract (except for the certain seasonal rentals which could increase from 82 800€ to 170 000€).

 

  • The French government encourages the availabilities of land to be built

To increase the real estate projects in France, the government proposes in 2018, to give discount on the capital gain tax when an owner of empty land sells his land to be built. However, it is valid only if the preliminary contract is signed before end of 2020 and concerns certain areas in France. 

 

  • Cancellation of the living tax (taxe d’habitation) for 80% of the owners

This is the main news from Emmanuel Macron and is starting between 2018 and 2020. Every year, the concerned persons will pay 30% less until full exemption in 2020.

 

There are some revenue criteria to be part of this new tax exemption.

 

Please, note that the above information is general and shall not be used for legal purpose. It is certainly not substitute to a professional advice.
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