Wealth tax and parking fines top the list of changes for people in France in 2018

by Ray Clancy on December 28, 2017

As is usual, a number of changes that affect people living in France will be brought in by the Government on the first of January 2018, some of which will have implications for expats.

Perhaps the biggest change is a change to the notorious wealth tax. Under reforms promised by French President Emmanuel Macron. The Impôt de Solidarité sur la Fortune (ISF) is an annual levy of up to 1.5% on property and assets worth over €1.3 million held worldwide by residents.

France Tax

(By xtock/Shutterstock.com)

The amounts will stay the same but on 01 January 2018 the tax will now apply almost exclusively to the property and assets of French residents’ only. It is being welcomes by expats with property and assets in France, according to Fleur Buckley, property services manager at French Entrée.

‘It will bring a renewed surge of interest from buyers and investors alike into some of the prime real estate markets in France including Paris, the Alps and of course Provence-Cote d’Azur. This comes at a time when agents are particularly proactive at bringing new properties to market in the anticipation of gearing up for Spring interest from new buyers,’ she said.

One market set to benefit from these tax changes is the French capital. Typically, demand for property in Paris is greater than the supply but this will start to balance in the New Year with the buyers’ market becoming more competitive once again with the easing of the wealth tax.

The minimum wage in France is set to go up by 1.24% in the New Year with the hourly rate rising by 12 cents from €9.76 to €9.88, which will equate to a rise of around €15 a month for those on this level of pay. The monthly minimum wage will be €1,498 for a regular 35 hour week.

The price of parking fines will more than double, perhaps even triple, in some areas of Paris as city mayors will be allowed to set the amount. Paris Mayor Anne Hidalgo has already announced that parking fees are going up from €17 to €50 within Zone 1 and to €35 in Zone 2. However, this can be reduced to €24.50 payment is made within 72 hours.

In each municipality the fees will be set by the town hall which will keep the revenue generated from the parking fines to spend on improved public transport. However, the fee cannot be greater than the costs for all day parking.

Aspects of the practical part of the driving test will change. It means that technical and road safety elements will be introduced and candidates will also have to take a basic first aid test as well.

Dentist bills will increase for a variety of services including the cost of a filling rising from €41 to €67 but the cost of false teeth and crowns will be steadily capped although the amount reimbursed for a crown will drop in 2019.

On top of this the cost of dentists doing check-ups on patients with severe mental or psychological disabilities, will change to €60 or €90 if it’s necessary to use sedation.

The cost of some medicines will also rise. The price of pain killers such as Coltramyl, Miorel, and Myoplege will no longer be reimbursed from 02 January 2018.

The price of stamps is set to increase by around 5% at the beginning of 2018. A green stamp will rise from 73 cents to 80 cents and red stamps for priority letters will rise from 0.85 cents to 0.95 cents.

{ 1 comment… read it below or add one }

John Brian December 28, 2017 at 9:08 pm

How will the changes in the wealth tax change the housing market in Paris? There is already a shortage of supply, all the changes will do is push up the cost of already overpriced properties. All that will do is to make the very rich richer!

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