Tax advice of the week: Move to France

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.

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

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.