France is expensive in Paris, on the Riviera and in tax matters: social levies on capital income, a property wealth tax from €1.3 million and inheritance tax up to 45 percent. The provinces and quality of life are another country.
The short answer
High levies, expensive metropolis, affordable provinces. Unfavourable for the wealthy and heirs, for employees with families often better than expected thanks to family splitting.
milinia’s take
- Family splitting: income is divided by family parts; children cut tax far more than in Germany.
- IFI: property wealth tax from €1.3 million of net property wealth, 0.5 to 1.5 percent.
- Inheritance tax: only €100,000 allowance per child, then 5 to 45 percent; spouses tax-free.
- Impatriés regime: up to 50 percent of salary tax-free for eight years when relocated by the employer.
Living and costs
On average 2 percent below Germany, but Paris sits 30 percent above: a one-bedroom flat in the centre €1,300, in Lyon €800, in Bordeaux €750, in Montpellier €700. The Riviera is at Paris level; Brittany, the Massif Central and the south-west are 30 percent cheaper than Germany. Groceries slightly dearer, restaurants similar, energy cheaper thanks to nuclear power.
Taxes
Income tax runs up to 45 percent, plus social levies CSG and CRDS of 9.7 percent on employment income and 17.2 percent on capital income. Capital income is taxed at the 30 percent flat tax, alternatively at the tariff. Family splitting divides income by family parts (couple 2, each child 0.5, from the third 1), which relieves families with children considerably. The IFI wealth tax hits only property from €1.3 million net at 0.5 to 1.5 percent. Arriving employees can use the impatriés regime: up to 50 percent of salary and half of foreign capital income tax-free for eight years.
Property
Paris €9,500 per square metre after the decline from 2022 to 2024, Lyon €4,500, Bordeaux €4,300, Nice €5,500, Marseille €3,300, provincial towns €2,000 to €3,000. Closing costs around 7 to 8 percent for existing property (notary fees including taxes), 2 to 3 percent for new builds. Rental yields in Paris under 3 percent, in mid-sized towns 5 to 6. The taxe foncière has risen for years, in many cities above €1,500 a year for a flat. Sale tax-free after 22 years, before that 19 percent plus 17.2 percent social levies with taper relief.
Gold, portfolio, bank
Investment gold VAT-free, on sale an 11.5 percent flat tax on the sale price or 36.2 percent on the gain with taper relief after 22 years. Foreign portfolios must be declared. French banks charge account fees; neobanks are the alternative.
What emigrants underestimate
Inheritance tax: only €100,000 of allowance per child every 15 years, then 20 percent from €15,000 and up to 45 percent. For Germans with wealth France is an inheritance tax problem that lifetime gifts soften. And the social levies on capital income, which also hit pensioners not insured in France, partly refundable.
Try it yourself
Travel Budget CalculatorCountry, days, people, style: your daily budget and travel fund, with buffer and cash share.Income Tax CalculatorEnter taxable income, read off tax, marginal rate and average rate, with joint assessment.Frequently asked questions
Is the German pension taxed in France?
Statutory pensions remain taxable in Germany under the treaty; France counts them for the rate. Company and private pensions are taxed in France.
Is there still a general wealth tax?
No, since 2018 only on property (IFI). Portfolios, gold and cash are exempt.
How high are the closing costs?
Around 7 to 8 percent for existing property, collected by the notary and mostly taxes. Agent 3 to 6 percent, often included in the price.
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