Hey everyone, I’m planning to move to France soon but keep my townhouse in the US as a rental property. I’ve heard some stuff about wealth taxes in France that’s got me worried. Can anyone clarify if I’ll have to pay extra taxes on my US property after living in France for 5 years? Is it true that I might have to fork over 1.5% of its value each year? That seems pretty steep!
I’d love to hear from anyone who’s been in a similar boat. Have you managed to keep your US property while living in France? How did you handle the tax situation? I know I should probably talk to a pro who knows both US and French tax laws, but I figured I’d ask here first to get a general idea. Thanks for any insights you can share!
As someone who’s gone through this, I can tell you it’s not as bad as you might think. There’s no 1.5% annual tax on your US property value in France. The wealth tax (IFI) only kicks in if your total real estate assets worldwide exceed €1.3M, and even then, the rates are progressive.
You’ll still need to report your US property on your French tax returns and pay US taxes on any rental income. The tricky part is navigating both tax systems simultaneously. I found it invaluable to work with a tax advisor who understands both US and French tax laws. They helped me optimize my tax situation and avoid double taxation thanks to the US-France tax treaty.
My advice? Start researching now and budget for professional help. It’s worth it to get it right and avoid headaches down the line.
yea, it’s tricky. i own a place in cali and live in france. no 1.5% tax, but there’s the IFI if ur property’s worth over €1.3M. you’ll still pay US taxes on rental income. def talk to a tax pro who knows both systems, they can help u navigate the rules and save $$$. good luck!
Hey there! I’ve been in a similar situation. No worries about that 1.5% tax - it’s not a thing. But heads up, you’ll still need to report your US property on French taxes. Have you thought about how you’ll manage the rental income? It can get tricky balancing both tax systems. Any specific concerns keeping you up at night?