WEALTH TAX REFORM

The Rectifying Finance Law for 2011, Law of 29th July 2011, has reformed wealth tax. The changes are as follows:

From 2012, there will only be two rates:

-For assets of which the net value is between 1,300,000 Euros (One million three hundred thousand Euros) and 3,000,000 (Three million Euros) a rate of 0.25% is applied to the totality

-For assets of which the net value is above 3,000,000 Euros (Three million Euros), a rate of 0.5% is applied to the totality

As a result, those tax payers whose assets are valued between 800,000 Euros (Eight hundred thousand Euros) and 1,300,000 Euros (One million three hundred thousand Euros) no longer pay wealth tax.