France to tax yachts, supercars and precious metals

Photo: Monaco Life
Photo: Monaco Life

French President Emmanuel Macron’s abolition of the wealth tax soon after he took office was designed to stem the flow of millionaires from the country, but following a sustained outcry from his critics – who have called him “President of the rich” – his government is planning to introduce a tax on luxury yachts, supercars and precious metals in the 2018 budget.

The wealth tax was brought in by the Socialists in the 1980s, and was levied on individuals with assets above €1.3 million. Although there were plans to replace it with a real estate tax, yachts, luxury cars and jewellery were supposed to escape the levy.

“The idea of the wealth tax reform was that there should not be a brake on contributors to economic production, that we suppress taxes that deter investors,” Richard Ferrand, leader of the Republic on the Move parliamentary group, has said.

“Taxing real estate wealth is compatible with this, but goods such as yachts, luxury cars or precious metals do not contribute to the productive economy either.”

The 2018 budget bill will be studied by parliament’s finance commission this week.

Meanwhile, Tuesday, October 10, will see another national day of strike action against the President’s changes to France’s labour laws. Expect delays and cancellations for regional train service in and out of Monaco until 8 am on Wednesday, October 11.

Additionally, over this same period, there is a French air traffic control strike which will affect Nice airport. See the airport’s website for real-time flight arrivals and departures.

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