Tax advice of the week: Move to France
If you are thinking of emigratiing in these gloomy times, France is looking a lot more attractive after Nicolas Sarkozy announced plans to scrap the country's wealth tax.
If your thoughts are turning to emigration during these gloomy times, you may want to add France to your list of possible destinations, says Alexandra Goss in The Sunday Times.
President Nicolas Sarkozy recently signalled that he plans to scrap the country's wealth tax. It affects thousands of Britons living in France, as well as those who own holiday homes there. The tax is levied at rates from 0.55% to 1.8% of net assets above €790,000 annually.
Other measures have been introduced in recent years too. "These include a 30% reduction in income tax on money earned in France" and a "50% reduction in tax on interest, capital gains and dividends generated in any country within the EU or a country with a tax treaty with France" for those who move there temporarily.
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If you do buy a property before the wealth tax is scrapped, try and reduce your liability by taking out a mortgage (there are some good deals around), as the French authorities look at the net value of a property, advises Sarah Cormack of the law firm Withers.
