France's New Luxury Tax Law: Income Proof Required for High-Value Purchases

France Implements New Law Requiring Income Justification for Luxury Purchases France is set to introduce a new measure aimed at curbing tax evasion and improving financial transparency. Starting August 24th, 2025, individuals purchasing luxury goods exceeding €1000 will be required to provide proof of income. This applies to a wide range of items, including jewelry, watches, and high-tech products. The law aims to address concerns about money laundering and tax fraud, particularly regarding purchases made in cash, installments, or through foreign platforms. According to BFM TV, the Ministry of Economy hopes the measure will improve the overall financial transparency of the country. "The objective is clear," stated a source close to the Ministry, "to combat fraud and inconsistencies in wealth declaration." The new system requires individuals to link their purchases to their declared income via an online portal. Those who fail to provide sufficient justification may face further investigation and potential penalties. While the law has been met with some debate, the government emphasizes its role in ensuring fair taxation and preventing illegal activities. The success of this measure will depend on its effective implementation and enforcement.