Impôt de solidarité sur la fortune (ISF) will get you

[Rock Private Office]

Retiring to France? Plan carefully or the wealth tax - Impôt de solidarité sur la fortune (ISF) will get you.

The extent of your liability depends on residency. While overseas effectively only the value of any real estate owned in France is used to assess your liability. The tax due is based on self declaration and therefore the system is clearly open to abuse. However, should the authorities investigate you, they can back-date due payment 10 years.

If you repatriate or retire to France, there is exemption from tax on assets located overseas for five years. After five years, the tax is payable if you have total worldwide assets in excess of €1,300,000 (inflation linked). When you become resident, the tax encompasses all cash and property owned by the household, as well as cars, jewels, furniture, shares, fine wines and other valuables.

There are certain deductible allowances, notably for certain types of debt (including mortgage on your primary residence) and investments. There is also a 30% allowance against the value of your home. In addition, antiques over 100 years old, art collections, historic cars, the value of artistic, industrial and literary rights and certain alimonies are also exempt.

There is also credit for employee and director shareholdings and investments in small or medium sized companies based in the EU, in addition to partial exemption for woodland, long term shares held by share clubs and business properties...

All music to the ears of a good financial planner!