DA-Tax
French Property Wealth Tax
This article is for general information only. You should not act or refrain from acting in reliance of it. You should always obtain professional advice on the facts of your particular case. Nothing in this article constitutes financial advice. The owner of this site accepts no liability.
Tax Base
Replacing the former French wealth tax, IFI is levied on the net real estate assets of the household (foyer fiscal), which includes properties as well as real estate rights.
If you are a French tax resident, your worldwide real estate assets will be taken into account to assess whether you are liable for IFI and which rate applies. If not, only real estate properties located in France will be looked at.
However, when you first come to France, you can benefit from a specific regime where only your properties located in France are taken into account for the calculation of your IFI during your first five years of French residency.
Main deductions and exemptions
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The market value of your principal residence property is discounted by 30% to calculate your net real estate assets.
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Some properties can also be excluded from the tax base if they are used for professional or agricultural activities.
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If you donate to specific charities, your IFI can be reduced by 75% of the value of your gift (up to €50,000).
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There is also a cap: the portion of tax paid exceeding 75% of your global revenues in a given tax year can be offset from your next year IFI.
Rates
The household is liable to IFI when the net real estate assets are worth more than €1.3 million on January 1st each year.
If your household is liable, the progressive rates apply as follows:
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Up to €800,000: 0%
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Between €800,001 and €1,300,000: 0.5%
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Between €1,300,001 and €2,570,000: 0.7%
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Between €2,570,001 and €5,000,000: 1%
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Between €5,000,001 and €10,000,000: 1.25%
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Greater than €10,000,001: 1.5%
Our French Desk team is at your disposal should you have any question about real estate taxes in France.
+44 (0) 7922 878 989