are resident in France are taxed on their worldwide assets and individuals who are resident outside France under French law are taxed on their assets in France. The tax is set for each household (married couples or partners, persons cohabiting, plus minor children). The tax base includes all property, rights and values that constitute the wealth of taxpayers at 1 January of the relevant tax year (buildings built or not, individual businesses, farms, movable furniture, financial investments, debts owed to you, automobiles, aircraft, pleasure boats, ...). However, certain assets are wholly or partially exempted (mainly professional property, i.e. individual companies, rights on literary and artistic works held by the author, some rural property, objects and antiques, artwork or collectibles). Individuals resident in France are entitled to a deduction of 30% against the value of their main home for wealth tax purposes. A resident in France may potentially reduce wealth tax due to the restriction that applies to the amount of combined income tax, wealth tax, social charges (CSG and CRDS) and local property taxes that can be taken from one's taxable income. This restriction is known as the Bouclier Fiscal or tax shield, and limits these taxes to no more than 50% of your taxable income. On 6 August 2008, France enacted a law that entitles all those who have been non-resident in France for the five previous years, to exclude their non-French assets from wealth tax for the first five years of their residence in France. While this minor tax applies only to the most wealthy of the population, and actually collects very little revenue (2% of overall tax revenue), it is very controversial. Many people on the political left consider it a symbol of solidarity, while many on the right argue that it encourages entrepreneurs to leave France. Succession and gift taxes These taxes, known as Droits de Succession et de Donation, apply to both gifts and inheritances. The taxes apply where: (a) The donor/deceased is resident in France at the date of the gift/death; (b) The recipient is resident in France and has been so resident for at least 6 of the 10 tax years prior to the year in which the gift/inheritance is received; or (c) The asset is a French asset. These provisions can be overridden by a Tax Treaty. Tax is payable by the recipient, based on the amount received and their relationship with