Taxation on "signes extérieurs de richesse"?

[TristanTristan]

I am thinking of settling in France and am trying to understand my potential tax liability. From my reading of a variety of French tax sites, it transpires that the authorities have the option of levying income tax (and "prélèvements sociaux"?) on "signes extérieurs de richesse" based upon a precise scale ("barème") of such "signes" if that computation comes to more than 133% of the conventionally declared taxable income.

For a person in my postion with a quite modest annual pension but with some savings, a house potentially in the 350/400,000 EUR purchase price range, three horses and two cars, this option looks quite scary, particularly the "barème" value of a house, which is 5 x "la valeur locative cadastrale".

I cannot glean much information on the "valeur locative cadastrale" other than that it is also used as a basis for the "taxe d'habitation" and "taxe foncière", that it is sensitive to such things as outbuildings and swimming pools and that it is subject to periodic inspections and re-assessment.

Has anyone got any experience or knowledge of this type of taxation and the conditions in which the authorities may apply it, so as confirm or deny my fears?

 

 

[LesLauriers]

In the circumstances you describe you will probably be liable for wealth tax, I would suggest that you ensure that your declaration is beyond reproach.