All individual taxpayers are only liable to tax certain income sources. hotel apartments
French Polynesia has a tax haven character. Residents shall be treated for tax purposes in the same way as non-residents.
INCOME RENTAL
Transactions Tax (transaction tax);
Property rentals of any description are considered receipts and fall under the heading of the transactions tax for service providers and professionals. With regard to leasing property, the gross rent tax will be levied at the following rates:
TAX TRANSACTIONS
TAXABLE INCOME, MARGINAL TAX RATE (US$) CFP
Up to 5 million dollars (56,345 dollars) The 2.2%
Five million–11 million (123,960 US dollars)
4.4 percent over US$56,345 on band
11 million to 22 million (247,920 US dollars)
5.5 percent over US$123,960 on band
Twenty-two million – 55 million (619,800 USD)
6.6% over US$247,920 on band
55,000,000-82,000 (US$924,065)
8.8 percent over US$619,800 on band
Over 82 million (US$924,065) 11% of all revenues above US$924,065
For individuals tax-residents in France and investing in French overseas departments and territories, including the Girardin Loi, which concerns new or renovated homes, special tax compensations are available.
Loi Girardin- for people
Investors must also:
Live the property for at least five years after buying or
Five years of rent after purchase or
Invest in a company or society that has been establishing buildings for rent for at least five years in the overseas departments and territories.
The maximum incentive is 64% of the cost of the building and can be deducted from the tax payments for individuals:
over five years for a rental property investment
Over ten years to buy your main home
The reduction in taxes is limited to CFP1,953 (US$ 22) per m2 (2005).
25% of the cost of a home intended for the buyer
40% of the cost of housing for rent in the free market
50% of the cost of a residence for rent to tenants under certain higher limits.
plus 10 percent if you live in a city
plus 4 percent when renewable energy systems are equipped with swelling
Up to 64 percent of the cost of the building.
CAPITAL GAINS TAX (value-added tax).
Capital gains from the sale of land or real property are subject to the tax on the gains in real property (plus-value tax). The taxable profit is the selling price less acquisition costs and associated costs. The first CFP20 million (USD 225,381) is tax-exempt. The tax rate applicable depends on the holding time of the property:
CAPITAL TAX Winners
PERIOD HOLDING TAX RATE
20 percent for up to 3 years
Three years - five years 10%
Nil for more than five years
TAX PROPERTY
Property Tax (first land on built properties).
Buildings at a flat rate of 10 percent are subject to property tax. A deduction of 25 percent of the rental value of the property is paid to all owners which means that 75 percent of the property's rental value is effectively charged.
Municipalities may levy 50% of the property tax surcharge, making the maximum effective rate of tax at 15%. New buildings are entitled to a tax exemption of 5 years.