You are a private individual
Your Property Wealth Tax donation
The Culturespaces Foundation operates under the aegis of the Fondation FACE, a recognised public-interest organisation. In this context, your donations enable you to benefit from tax reductions. All the information on tax below has been drawn from the French Finance Act for 2018 (Law no. 2017-1837 of 30 December 2017, law of finances for 2018 – JORF no. 0305 of 31 December 2017). Following the 2018 reform of the Solidarity Tax on Wealth (ISF), it has been replaced by the Property Wealth Tax (IFI): only property assets not used for the owner’s professional activity are taxed, whether they are owned directly or through other means (an asset management company, a REIT, a non-trading real estate investment company, or an OPCI (a French legal structure for real estate investment)).
Donations are the only means to reduce the tax base
Following the reform, the available tax deductions are extremely limited giving a donation to a foundation is now the only means to reduce the tax base, which serves as a basis for determining the Property Wealth Tax (IFI).
Threshold and rate
If you are liable to pay Property Wealth Tax (IFI) in 2018, 75% of the amount of your donation to our foundation can still be set against the tax.
As for the Solidarity Tax on Wealth (ISF), the IFI threshold is €1.3 m and there is a progressive tax rate, beginning at €800,000.
A concrete example
Hence, if you are liable to pay Property Wealth Tax (IFI), you can make a donation to the Culturespaces Foundation, and deduct 75% of the amount of your donation from your IFI in 2018, up to a limit of 50,000 € (i.e. a maximum donation of €66,667).
What is the time limit for making a donation?
The calendar for the receipt of donations remains the same as that for the Solidarity Tax on Wealth (ISF). The deadlines for tax returns will be in May and June of each year (depending on whether the tax return is completed in paper form or online). We will inform you of the dates when the calendar has finally been set.