France V.A.T. and Other Taxes

V.A.T in France / French VAT

The standard VAT rate in France in 2022 is 20%.
There are also reduced VAT rates of 10%, 5.5% and 2.1%.
The threshold for VAT registration is EUR 81,500 for suppliers of goods and EUR 32,600 for suppliers of services.
Input VAT is either offset against output VAT or reimbursed.

France - French Wealth Tax

A wealth tax is due every year by individuals holding net assets exceeding EUR 1,300,000.
The tax rates are 0.5% for net assets valued up to EUR 10 million and 1.5% for net assets valued above EUR 10 million.
French residents pay wealth tax on their worldwide assets , non-residents pay wealth tax only on their French assets.

French Inheritance Tax

The tax is imposed in France at rates of 5%-45%.
The tax rate for inheritance given to an unrelated inheritor is 60%.
There is a basic tax exempt sum which depends on the closeness of the recipient and the deceased. The tax rate also depends on the closeness of family relation, smaller tax rates for closer relatives.
Inheritance between spouses is fully tax exempt.

French Real Estate Taxes

VAT (at 20%) is paid on the disposal of new buildings or real estates.
Taxes of up to 5% are paid on disposals of other buildings or real estate.

French Social Security

Contributions are subject to ceilings and are about 40%-50% of the gross salary for the employer and 20% for the employee.

(previous 2009 article by Olivier Maurin,

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