4.2. What assets are included in Calculation?

The assets that are included in the calculation for French wealth tax will depend on whether you are resident or non-resident.

1. 4.2.1. Residents of France
2. 4.2.2. Non- Residents

4.2.1. Residents of France

If you are resident the tax is wide in the scope of assets which must be included in the calculation.

They include, of course all cash and property owned by the household, as well as cars, jewels, furniture, shares, fine wines and other valuables.

So as to ease the valuation process it is permissible to value household furniture and accessories at the rate of 5% of the value of all other assets.

As a general rule, business assets are completely excluded for the purposes of the calculation.

In addition, antiques over a 100 years old, art collections, historic cars, the value of artistic, industrial and literary rights, and certain alimonies are also exempt.

There is also substantial exoneration for employee and director shareholdings, and those by investors in small or medium sized companies (PME) based in the EU. There is also partial exemption for woodland, long term shares held by share clubs, and business properties.

4.2.2. Non-Residents

If you are not resident, then only the net value of your fixed property assets will be taken into consideration for the tax.

Given that the tax is not payable if the property has a value of less than €770,000, it is only going to be relevant for a small number of property owners.