Although a new pay as you earn (prélèvement à la source) system has been introduced in France in 2019, most French residents are still required to submit a French tax return. Non-French residents are required to submit a French tax return usually because they receive rental income from a French property.
Taxpayers who own real estate property either directly or indirectly (e.g. through shares, funds, trusts) worth more than €1.3million net of allowable loans are liable to the real estate wealth tax. For non-French residents, the €1.3million threshold applies only to property located in France. This is declared on the usual French income tax return if you also have French income. If you are non-French resident without any French income, there is a separate standalone wealth tax return that you will need to complete.
Kehinde Dauda has had over 20 years’ experience of dealing with the French tax – completing forms and dealing with the French tax authorities. Many of our clients appreciate that they receive French tax advice in English.