Wealth tax, ISF tax impôt de solidarité sur la fortune
The terms of ISF liability
impôt de solidarité sur la fortune – wealth tax or ISF tax
Under article 885 of the French tax code, modified by Law n°2012-1509 dated 29 December 2012 – article 13 « are subject to an annual ISF tax when the value of the estate is superior to €1,300,000 : (…)
2° Persons not tax resident in France, but owning propery in France.
Except in cases stated under a and b of 4 of article 6, married couples are subject to a joint taxation.
The conditions of the taxation are based on value as of 1 January of each year. »
Article 6 paragraph 4 of the French tax code states that « Spouses are subject to a separate taxation
- when there are separated and do not live under the same roof ;
- when being in the course of a legal separation or divorce, they have been authorized to have separate residences».
Article 885 E of the French tax code defines that « the basis of assessment for the ISF is constituted by the net value, as of on 1st January, of the global estate, rights and taxable assets owned by Persons designated by article 885 A, as well as those owned by minors under the legal administration of the said Persons. »
The ISF is an annual tax owed by persons, whose assets are valued in the same household as of 1st January (the French tax code considers the married couple and the minors as a single tax entity) when reaching a threshold which, since 2013, has been fixed at 1,300,000 euros.