The solidarity tax on wealth (french: Impôt de solidarité sur la fortune or ISF) was an annual direct

wealth tax A wealth tax (also called a capital tax or equity tax) is a tax on an entity's holdings of assets. This includes the total value of personal assets, including cash, bank deposits, real estate, assets in insurance and pension plans, ownershi ...

on those in

France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...

having assets in excess of €1,300,000 (since 2011).French wealth tax explained in full
in

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It was one of the

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's 1981 electoral platform's measures, 110 Propositions for France. First named IGF (''Impôt sur les Grandes Fortunes''), it was abolished in 1986 by

Jacques Chirac Jacques René Chirac (, , ; 29 November 193226 September 2019) was a French politician who served as President of France from 1995 to 2007. Chirac was previously Prime Minister of France from 1974 to 1976 and from 1986 to 1988, as well as Ma ...

's right-wing government, but reestablished in 1988 as ISF in slightly different terms after

François Mitterrand François Marie Adrien Maurice Mitterrand (26 October 19168 January 1996) was President of France, serving under that position from 1981 to 1995, the longest time in office in the history of France. As First Secretary of the Socialist Party, he ...

's reelection. In September 2017, the Government of France decided to abolish ISF and replace it with the tax on real estate (IFI), from 2018.

Scope

The calculation applied to tax declarers, meaning that it could apply to a grouping of two individuals: married couples, cohabiting couples, or couples with a PACS. All global assets were taken into account for French residents; for others, the tax was based on assets that reside in France, with the exception of financial ones. The ISF was controversial; critics claimed it drove away wealthy individuals from the country, resulting in financial loss. A report by a senator estimated that 843 people left France in 2006 because of the tax, resulting in a net loss of €2.8 billion.

Basis

In principle all assets were taken into account except for the following: * professional goods such as enterprises (depending on the percentage owned), * vintage (more than one century old) and collection objects, * artistic, literature, or industrial rights, * woods and participation in forestry plantations (for 75% of their value), * anonymous bonds, * capital value of pensions and retirement plans, * capital obtained as compensation for physical injury in accidents or due to illness.

Revenue

ISF brought in €4.42 billion in 2007, 19% more than in 2006. It constitutes 1.5% of France's total tax receipts.France’s Wealth Tax: Great Fortune is [sic] Well
/ref> Half of all households who pay ISF make an annual contribution of less than €2,000.

Rules to fix the net taxable value

ISF was levied on what remained of the gross value after subtracting deductible debts. The gross value was determined by the declarer following certain rules. For example, the value of the principal home was reduced by 30%, as was done for some rental income. Certain real estate properties in countries with a fiscal convention such as

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, and

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were excluded. The furniture in the home could not exceed 5% of the total value of the other goods. Following President

Nicolas Sarkozy Nicolas Paul Stéphane Sarközy de Nagy-Bocsa (; ; born 28 January 1955) is a French politician who served as President of France from 2007 to 2012. Born in Paris, he is of Hungarian, Greek Jewish, and French origin. Mayor of Neuilly-sur-Se ...

's tax law of 2007, ISF was adjusted so that the sum of all taxes due in France would not exceed 50% of the annual revenues. He overturned this in 2011, at the same time as lowering the rates of the ISF.

Rates

After calculation, a deduction was granted for minors or any disabled persons living in the same household.

References