The 3 Percent Tax Regime Reform
Mondaq Business Briefing › France Law Articles in English (2008)
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The 3 Percent Tax Regime Reform
Pursuant to sections 990 D to 990 H of the French tax code ("FTC"), all French and foreign legal entities that directly or indirectly own real property situated in France are subject to an annual tax equal to 3 percent of such properties' fair market value (as determined on January 1 of the relevant year) ("3% Tax").
The 3% Tax was initially aimed at ensuring effective fiscal supervision and preventing tax avoidance and evasion with respect to the French wealth and inheritance/gift taxes. The objective was to prevent the acquisition of French real estate assets by taxable individuals acting through intermediary entities located in foreign countries. Foreign legal...See the full content of this document
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