Wealth Tax Shock 💰🔥: Changes & Debate Explored!

World News

As France’s parliament continues its intense debate over the draft 2026 budget – a process marked by hundreds of proposed amendments – several key measures are expected to impact foreigners living in the country. Assuming the budget ultimately passes, significant changes are anticipated, particularly regarding access to French public healthcare. Non-EU nationals on “visitor” status will soon be required to pay a minimum charge to utilize these services, though the exact amount remains to be determined. A related amendment clarifies that exemptions will apply to individuals from countries with existing bilateral agreements with France, such as British citizens utilizing the S1 form. Further alterations include an increase in the Contribution Sociale Sénéralisée rate, rising from 9.2% to 10.6%. This “social charge” applies to income generated from sources like real estate, savings, and investments – including proceeds from life insurance, dividends, and savings plans. The Socialist Party estimates this change will generate an additional €2.8 billion, though the Minister for Public Accounts intends to revisit this measure as part of the ongoing parliamentary process. The parliament has also opted to maintain the current upper threshold of 40% for regulated discounts on generic medicines, a decision driven by a recent strike by French pharmacists who had threatened weekly walkouts over a proposed reduction in these discounts. Historically, these discounts were designed to promote the use of cheaper generic drugs. Finally, MPs have shortened the waiting period for second-home owners to be exempt from capital gains tax upon resale, from 22 years to 17 years. Additionally, they rejected a proposal for a minimum two-percent tax on wealthy individuals with assets over €100 million, though they did approve a change to the IFI, which imposes extra taxation on real estate valued above €1.3 million.