property taxes in france for foreigners


What is the property tax in France?

    All French and foreign legal entities that directly or indirectly own real property in France are subject to an annual tax equal to 3% of the fair market value of the property (as determined on 1 January of the relevant year). Trusts and investment funds also are subject to the 3% tax. See also below under “Transfer tax” and “Other taxes.”

Is foreign-source income taxable in France?

    Residents and nonresidents are taxable in France on profits allocable to a French business and on French-source income. Foreign-source income of French residents generally is not subject to French tax (and foreign-source losses may not be deducted).

How do tax treaties work in France?

    However, most tax treaties provide for a tax credit mechanism that generally corresponds to the withholding tax paid in the source country, but capped at the French tax actually due on the net income. The portion of the credit exceeding the cap is forfeited. Tax treaties France has a broad tax treaty network covering more than 100 countries.

What is the tax on royalties in France?

    Royalties, commissions, consultancy fees and fees for services performed or used in France paid to a nonresident (company or individual) are subject to a domestic withholding tax of 33?%.This tax may be reduced or eliminated by an applicable tax treaty or where the EU interest and royalties directive applies to the payments.
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