Tax changes to French property

While the proposed abolishment of wealth tax has been cancelled, the threshold for paying wealth tax will increase to €1.3 million compared with the previous threshold of €800,000. Those falling below the new threshold of € 1.3 Million will no longer have to file a wealth tax return effective as of January 2011. Under the new regime, the previous six rate bands will be simplified to just two. Those with assets between €1.3 million and €3 million will be subject to a tax of 0.25% and for those with assets over €3 million the tax will be 0.5%. Cécile Acolas of Moore Stephens says: "...