Glossary of French tax terms

Crédit d'impôt pour la transition énergétique.

A tax credit available for green energy expenditure. It is being phased out from 2020 and replaced with a means-tested grant system called MaPrimeRénov.

Legally splitting ownership of an asset into two parts: nue-propriété ('bare ownership') and usufruit ('usufruct' = right to use the asset and receive income it). The two are like distinct assets which can be owned by different people. The 'bare owner' is the nue-propriétaire and the owner of(...)

The tax household. In France the family is normally taxed as a unit, although there are exceptions to this rule. This unit is known as the foyer fiscal. The foyer fiscal includes the two spouses/civil partners and their dependants, normally children under 18, all living in the same household.(...)

French property wealth tax.

Income tax.

Capital gains tax.

Bare ownership. This refers to an asset with split ownership (démembrement). The 'bare owner' (nue-propriétaire) is the legal owner of the asset. They can sell and gift the asset. The other part of the split ownership is the usufruit.

Draft Finance Bill. Projet means 'draft'. It contains the proposed changes to tax laws. It is presented by the French government to the French parliament near the end of the year. It is then debated and voted on by the end of the year. Unless specified otherwise the changes will apply to the(...)

This describes a tax regime whereby a business is taxed based on gross income less actual deductible expenses. It contrasts with the régime micro which ignores the actual expenses; instead the deemed expense is a flat rate percentage (34%, 50% or 71% depending on the type of business) of the(...)

Total taxable income adjusted by adding other income that has not been taxed. It is used often in France for means-testing eligibility for tax advantages and social security benefits.

A type of French company specifically for owning and managing real estate property. It is a way for several people to own property jointly. The shareholders of the company can more easily transfer their share of the underlying property by transferring shares in the company.

Value added tax.

Usufruct. This refers to an asset with split ownership (démembrement). The usufruit is the right to use and receive income from the asset. The other part of the split ownership is the nue-propriété. As an example, if the asset is a property, then the owner of the usufruct (the usufruitier)(...)