Where Do the Rich Live in France?
Thursday 01 November 2012
Where do the wealthy live in France? Not surprisingly, with other wealthy people.
Not unexpectedly Paris contains more wealthy individuals than any other place in France. The city has nearly 87,000 individuals who are liable for the wealth tax (Impôt de solidarité sur la fortune), with an average individual wealth of €2.1 million.
However, it is the commune of Neuilly-sur-Seine, to the west of the capital city in the department of Hauts-de-Seine, which contains the wealthiest individuals. Here the average wealth is €3.4 million, as a result of which those liable each paid an average of over €23,000 in wealth tax.
Indeed, the department of Hauts-de-Seine contains no less than four communes in the list of the top twenty wealthiest places in France. The others are Boulogne-Billancourt, Rueil-Malmaison and Levallois-Perret.
The table below shows the top 20 places in France for individuals liable for the wealth tax in 2010, their average wealth, and the average amount they each paid in wealth tax.
|Town||No Liable||Average Wealth||Average Tax Paid|
|Paris ||86,949 ||€2.1m ||€9,018 |
|Neuilly-sur-Seine ||7,571 ||€3.4m ||€23,581 |
|Lyon ||7,283 ||€1.7m ||€5,707 |
|Marseille ||6,635 ||€1.7m ||€5,811 |
|Nice ||5,341 ||€1.6m ||€4,934 |
|Boulogne-Billancourt ||5,330 ||€1.9m ||€7,053 |
|Toulouse ||4,609 ||€1.7m ||€5,365 |
|Versailles ||4,562 ||€1.8m ||€6,079 |
|Nantes ||3,908 ||€1.7m ||€5,329 |
|Bordeaux ||3,614 ||€1.7m ||€5,646 |
|Aix-en-Provence ||3,162 ||€1.7m ||€5,990 |
|Strasbourg ||2,764 ||€2m ||€8,211 |
|Saint-Maur ||2,740 ||€1.7m ||€5,983 |
|Rueil-Malmaison ||2,507 ||€1.7m ||€4,924 |
|Cannes ||2,424 ||€2m ||€7,821 |
|Rennes ||2,240 ||€1.7m ||€5,237 |
|Saint-Cloud ||2,054 ||€2.2m ||€9,670 |
|Saint-Germain-en-Laye ||1,944 ||€1.8m ||€6,166 |
|Montpellier ||1,913 ||€1.6m ||€5,115 |
|Levallois-Perret ||1,780 ||€1.9m ||€6,502 |
Liability to French wealth tax arises to those with a net wealth of at least €1.3 million, although if this threshold is broken then wealth tax becomes payable from €800,000.
In the calculation of liability there is a 30% abatement on the value of the principal home, and business assets are not taken into account.
Those with second homes are also liable, but only on their assets in France.
The newly elected government of President Hollande is proposing reforms to the wealth tax under which the two-bands introduced by the former President Sarkozy in 2011 will be abolished. There will be a return to the six bands previously in place.
In the meantime an interim tax, called the contribution exceptionelle sur la fortune, has been introduced for 2012 to annul the effects of the Sarkozy reform.
It is not proposed to lower the ceiling for liability to the tax, which will remain at €1.3 million.
This article was featured in our Newsletter dated 01/11/2012