France is talking about bringing back a kind of old-school wealth tax. In itself, that is just another Monday in France. However, this time, it’s not just about property or real estate. The idea is to create something new: a tax on what the government calls “unproductive wealth.” That means assets that don’t directly help the economy, like art, yachts, crypto, and, yes, luxury watches. How dare they lump in our little mechanical wonders with the dogecoins of the world, non de dju!
Up to now, watches have been considered personal property, not something the taxman worried about. But if the new rule goes through, owning a valuable collection could suddenly mean an extra bill each year. Imagine a collector whose total assets, including property, savings, and watches, amount to three million euros. Under the proposed tax, they’d owe about ten thousand euros every year.
The problem isn’t just the tax itself; it’s the complexity it brings. I know nothing of how one goes about sticking a price to a used Yacht (collection), sadly, this is not a “problem” I have to deal with. But I do know a thing or two about sticking a price on a (used) watch. Unlike houses or stocks, watches don’t have a clear market value. One collector’s Submariner might be worth more than another’s depending on the condition, service history, or original papers. And prices move all the time. The value of a steel Rolex or a vintage Patek can swing 30% in a year depending on what’s hot in the auction world. The challenge is, valuing watches with any real accuracy is nearly impossible if you ask me, which makes the idea of taxing them effectively dead on arrival.
If I read things correctly, the “unproductive wealth” tax isn’t final yet, and it might still change shape as it moves through Parliament. There could be exemptions, deductions, or entirely new thresholds before anything becomes law. But it’s worth paying attention now, not later.
Note: This is written by a watch enthusiast for entertainment purposes and should not be considered professional advice at all. Please consult with a professional in case this law might affect you or your collection.