France

Estate planning in France is made far more challenging by ‘forced heirship’ succession law and inheritance tax rates of up to 60%. The regime is particularly daunting for complex family situations.

France’s budget introduces an income tax reduction for low earners and confirms the PAYE system will start next year. There are no changes to wealth tax and only a minor one to succession tax.

The New Year is a good time to review your financial planning for France. Is it up to date? There are various elements you should consider, from investments, to pensions, to tax and estate planning.

A reduced lifetime pension allowance could put your UK retirement savings in the firing line for 55% tax, but expatriates in France can find opportunities to safeguard their pension funds.

You need to be extra careful with your tax planning these days. Make sure it is up to date with all the various tax changes and is fully compliant. You also want to check that you are not paying more tax than necessary.

Both residents and non-residents pay capital gains tax on French property, but the main home is exempt and tax can be reduced on second homes.