SAVE your FRENCH TAX : French income tax ... French inheritance tax ... French habitation tax

French Income Tax
Main Residence : Interest on Mortgage

The loan interest paid in the 5 first years for a mortgage loan contracted with a financial company for the acquisition or construction of a main home and signed after the 6th May 2007 give a tax credit. Are excluded all consumer loan and bank overdraft. The tax credit is granted on the repurchase of a mortgage loan.

French Income Tax
Main Residence : Works / Home Energy Conservation

A tax credit applies in particular to the acquisition expenses of : - low temperature boilers and boilers with condensation (individual or collective), - materials of heat insulation, - devices of heating regulation (individual or collective), - equipments of power production using a renewable source of energy or hot air pumps which final goal is the production of heat. These equipments or materials must be integrated(joined) into an accommodation : - completed for more than 2 years for the expenses of low temperature boilers, boilers with condensation, materials of heat insulation and devices of heating regulation, - new or old for the equipment spending of power production using a renewable source of energy and hot air pumps. The tax credit is calculated on the price of the materials and equipments, exclusive of labour. To benefit from the tax advantage, these equipments must be however supplied and installed by a professional, with supporting invoices. A taxpayer who purchases directly equipments and employs a company for the works, or a taxpayer who realizes himself the works, cannot benefit from the tax credit. These measures apply until December 31st, 2009. An order of February 9th, 2005 published in the official Newspaper of February 15th, 2005 clarifies the technical characteristics and the criteria of minimal performances required for the application of the tax credit.

French Income Tax
Main Residence : Works / Home adaptation

It concerns: - The expenses of specific works to give greater mobility or safety to elderly or disabled persons in the home : works on sanitary equipements (kitchen sinks and washbasins at adjustable height; bathtubs with door), equipments of safety and accessibility (vertical hoists containing a platform fitted out for the transport of a handicaped person; devices of closure/opening or systems to command the electric installations, the water, the gas and the heating; furnitures at adjustable height). The installation of equipments specially conceived for the elderly or disabled persons must be made in the main home of the person who supports the expenses but it is not necessary that the elderly or handicaped person is living in that home. - The works of protection against the technological risks and the expenses of acquisition of electric elevators. To benefit from this tax allowance the accommodation must be situated in a perimeter covered by a plan of prevention of the technological risks, and the works must be prescribed by this plan and realized by a company.

French Income Tax
Personal Comfort : Domestic Help

List of the services at home giving the right to a tax credit or a tax allowance : - Maintenance of the house and domestic works - Small works of gardening, including the works of clearing - Services of small do-it-yourself - Nursing of child at home - Remedial classes at home - Preparation of meal at home, including time spent for shopping - Delivery of meal at home, on condition that it is included in a set of services made at home - Collection and home delivery of ironed linen, on condition that this is included in a set of services made at home - Assistance to eldery persons or to any person who needs a personal help to their place of residence, excluding medical acts - Assistance to the disabled persons - Home nurse, excluding medical acts - Assistance to the mobility and the transport of persons having difficulties of movement when this activity is included in a set of assistance service at home - Driving of the personal vehicle of a dependent person, from home to work, on the holiday resort, for administrative procedures, on condition that this is included in a set of activities made at home - Accompaniment of children, eldery or disabled persons in their movements outside their home - Delivery of shopping at home, on condition that this is included in a set of activities made at home - Computer and internet assistance at home - Care and walks of company animals for dependent persons, excluding veterinarian care and grooming - Cosmetic care at home for dependent persons - Temporary maintenance, cleaning and watching out at home, of the main and secondary home - Administrative assistance at home

French Income Tax
Personal Comfort : Child Nursing

Every person (single, widowed, divorced, married or linked by a PACS) incurring costs of child nursing outside of their home (called les frais de garde d’enfants) for one or several children can obtain a tax credit. Ex: approved nursery assistant, day nursery, day care center, child's garden …

French Income Tax
Personal Comfort : Long Term Nursing / Residential Care

The total expenses related to the dependence, including the expenses for long term nursing or residential care (food and accomodation) paid by every dependent person give the right to a tax allowance. The establishments in which residential care can grant a tax allowance are: - establishments providing the accommodation of eldery and dependent persons and the sections for long term care of health institutions - establishments situated in the other member states of the European Union, as long as they are equivalent to those authorized to host eldery persons in France.

French Income Tax
Financial Investments : Mutual Funds for Innovation and Proximity Investment Funds

Mutual funds for innovation (FCPI – Fonds Communs de Placement Innovation) and proximity investment funds (FIP - fonds d'investissement de proximité) are risky investments, which invest a significant part (60 %) of their capital in innovative companies (FCPI) or in developing regional small and medium sized firms (FIP). These investments authorize a tax exemption for a specific year as well as a tax exemption which can be extended over several years, under the condition that the investment is renewed every year.

French Income Tax
Financial Investments : Direct Investment in a Small and Medium Sized Firm

The French tax residents who subscribe to the capital of a company benefit from a tax allowance. To benefit from this tax advantage the taxpayer has to enclose to his tax return the individual statement made by the company which received the investment.

French Income Tax
Financial Investments : Companies for the Financing of the Cinematographic Industry

Since 1985, it is possible to exempt from taxation by investing in the cinematographic art and the broadcasting production. Indeed, the authorities established a tax incentive for the investment in Companies for the financing of the cinematographic and broadcasting industries (SOFICA – Sociétés pour le financement de l’industrie cinématographique et audiovisuelle).

French Income Tax
Financial Investments : The Retirement Saving : the PERP

For some years, the State decided to encourage the retirement savings, by granting some tax advantages. The retirement saving is a type of savings by capitalization, constituted from periodic payments of the saver. The sums are blocked up to the retirement of the saver ; they are then poured in the form of capital or transformed into life annuity. In France, the PERP (individual savings plan – Plan d’Epargne Retraite Populaire) is one of regulated form of retirement savings and grants a revenue deduction. This plan has been created by the law Fillon (minister of Employment and Social Affairs) on August 21st, 2003 as part of the reform on the pension’system.

French Income Tax
Miscellaneous : Charitable Donations

For private individuals, there are two categories of gifts giving a tax allowance : - the gifts made for the benefit of organization of general interest - the gifts for the benefit of a non-profit organization proceeding to the free supply of meal or care to underprivileged persons or contributing to facilitate their accommodation (organizations assisting persons in trouble). These payments must be justified. It is necessary to join the receipts of the gifts to its tax return. However, the persons who declare on Internet are not subjected to this obligation. It is then necessary for them to keep the receipts, as the tax authorities can require them.