Dual Citizen French-US Tax: What You Need to Know

4. Wealth Tax for Dual Citizens (Impôt sur la Fortune Immobilière)

Who Pays Wealth Tax?

Dual citizens must pay French wealth tax if their total net real estate assets exceed €1.3 million.

Taxable Assets:

All real estate assets held directly or indirectly, including properties in:

  • France
  • The U.S.
  • Other foreign countries

Temporary Exemption:
New residents in France are exempt from wealth tax on foreign properties for the first five years of residence.

5. Local Taxes for Dual Citizens in France

Property Tax (Taxe Foncière)

  • Paid annually by property owners.
  • Based on the property’s cadastral rental value and local tax rates.

Residence Tax (Taxe d’Habitation)

  • Applies to secondary residences.
  • Calculated using the property’s rental value and the regional tax rate.

6. Filing Requirements for Dual Citizens

  • French Income Tax: Must be declared by May for income earned in the previous year. Tax notices are issued in late August or early September.
  • U.S. Tax Returns: File annually by April 15, with extensions available for expats.
  • Wealth Tax: File at the same time as the French income tax declaration in May.

Key Considerations for Dual Citizen French-US Tax Management

  1. Double Filing Obligations: As a dual citizen, you must file tax returns in both France and the United States.
  2. Stay Compliant: Ensure you meet all deadlines and reporting requirements to avoid penalties in either country.
  3. Seek Professional Advice: Consult a tax specialist familiar with both systems to maximize tax credits and deductions while staying compliant.

By understanding your tax obligations as a dual citizen of France and the U.S., you can navigate the complexities of international taxation with confidence. Proper planning will help you optimize your tax strategy and maintain compliance in both countries.

Ready to Simplify Your Dual Citizen French-US Tax Obligations?

For personalized assistance with navigating your dual citizen French-US tax obligations, visit www.escec-international.com. Our team of tax specialists provides tailored advice to ensure compliance with both French and U.S. regulations, helping you maximize your tax benefits and minimize liabilities. Whether you need support with income tax, wealth tax, or local levies, we are here to guide you every step of the way. Contact us today to simplify your tax journey and focus on what matters most—your new life in France!