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French Assembly Backs Shift From Property Wealth Tax to "Improductive" Assets

The proposal now faces Senate review, with the government questioning its revenue estimates.

Overview

  • Deputies voted on October 31 to convert the real-estate-focused IFI into an "improductive wealth" tax covering a wider range of assets.
  • The plan would tax luxury movable goods and certain financial products at a flat 1% rate, with a primary residence exempt up to €1 million.
  • An unusual coalition of RN, PS, MoDem and Liot carried the amendment despite the government's opposition.
  • Ministers voiced doubts about the measure’s clarity and yield, while MoDem backers framed it as a step toward greater tax fairness.
  • LFI argued the single rate could lower payments for the very wealthiest, and the measure must still clear the Senate during ongoing budget talks.