- for income earned up to the limit of the second band of the residents’ progressive scale (currently set at 27,794 Euros per household share), the minimum rate of income tax is 20% of "Profit"
- where income exceeds the upper limit of this second band (in excess of 27,794 Euros):
- the minimum rate of income tax is 20% for the first amount up to this figure,
- and taxable income in excess of 27,794 Euros is taxed at 30% of “profit” and thereafter the general progressive scale applies, if relevant.
- Where non-residents reside in the EU, EEA (Iceland, Norway, Liechtenstein), or Switzerland, they will only have to pay 7.5% social taxes on their asset income; for property rental income this will apply retrospectively to income earned in 2018! For income related to capital investment, this reduction applies from January 2019.
- Where non-residents reside in any other country outside of the EU, EEA or Switzerland, the full 17.2% will apply to all asset income.
As in every jurisdiction tax is complicated, please do not hesitate to contact us if you would like to speak to a professional accountant based in Courchevel.