Guide to French Wealth Tax
Legal advice for French wealth tax
What is the French wealth tax (IFI)?
Who must pay the wealth tax in France?
What assets are taxed within the French wealth tax on property?
Calculation: how much is the wealth tax in France?
Filing the French wealth tax return
Glossary: useful terms to understand the French wealth tax on property (IFI)
The French wealth tax, known as “Impôt sur la Fortune Immobilière” or “IFI” is an annual tax payable by individuals whose real estate assets exceed a net value of €1,300,000. Individuals liable to the wealth tax are persons domiciled in France, as well as non-residents with real estate assets located in France.
Legal advice for French wealth tax
Our lawyers provide legal counsel to a diverse client base, including both French and international clients, family offices, and high-net-worth individuals, on all their strategic tax-related issues. Valoris Avocats offers high-quality assistance to private clients, particularly in matters concerning the French wealth tax. The international experience of our lawyers, their cultural understanding, their fluency in multiple languages (French, English, German, Mandarin, Italian, and Spanish), and their regular collaboration with network members are decisive assets for successfully advising non-residents on their tax obligations in France.
What is the French wealth tax (IFI)?
The IFI is a French wealth tax that targets only real estate assets owned by the taxpayer during the relevant year.
Households must pay wealth tax if the value of their real estate assets exceeds €1,300,000 (calculated per household, not per individual).
This tax replaced the former French wealth tax called “ISF” (Solidarity Wealth Tax) and which was abolished by the Finance Law in 2018. The primary difference is that the taxable base is now limited to real estate properties and real estate-based rights. Before the tax reform, taxpayers were subject to wealth tax on all their assets (real estate, securities, bank accounts, life insurance, artworks, etc.).
French tax residents are now liable for the new tax on their French and non-French real estate assets, while non-French tax residents are only taxable on their French property assets.
Who must pay the wealth tax in France?
Only individuals are liable for the IFI, whereas legal entities, whether public or private (civil or commercial companies, associations, foundations, etc.), are not liable for the IFI.
The IFI applies to both residents (including expats) and non-residents of France, with differing rules based on residency status:
- Wealth tax for French residents: French residents are subject to wealth tax on their worldwide real estate assets, including properties located within France and abroad.
- Wealth tax for non-residents: Non-residents are only taxed on properties they own in France. For individuals residing in countries with a double taxation agreement with France (e.g. the UK post-Brexit), specific regulations may apply, potentially allowing tax exemptions or credits to prevent double taxation.
What assets are taxed within the French wealth tax on property?
French wealth tax is payable on all real estate assets owned as of January 1 of the tax year by the taxpayer and their tax household.
This includes:
- All real estate properties and rights owned by the taxpayer and their household. In cases of dismembered ownership, the taxable assets are attributed to the usufructuary at their full ownership value.
- Shares or equity interests in companies or organizations, whether based in France or abroad, if their value reflects real estate properties or rights held directly or indirectly by the company. This category also includes the real estate-related value of life insurance and capitalization contracts. Similarly, real estate assets placed in trusts are included at market value as of January 1 of the tax year in the assets of the settlor or a deemed settlor.
Some assets, which qualify as business or those with historical significance, may be exempt from the IFI. It is therefore crucial to consult a tax expert to ensure you are aware of any applicable exemptions.
Calculation: how much is the wealth tax in France?
The net taxable assets will be subject to the following rates:
| Part of taxable net asset value | Rate |
| Up to € 800,000 | 0 % |
| From € 800,001 to € 1,300,000 | 0.5 % |
| From € 1,300,001 to € 2,570,000 | 0.7 % |
| From € 2,570,001 to € 5,000,000 | 1 % |
| From € 5,000,001 to € 10,000,000 | 1.25 % |
| More than € 10,000,000 | 1.5 % |
Example: for a net taxable value of EUR 3,000,000 the amount of tax will be EUR 15,690.
Filing the French wealth tax return
Individuals with net taxable property assets exceeding €1.3 million on January 1st of Year N must file a wealth tax return in Year N+1 (simultaneously with their income tax return).
In 2024, for example, the deadlines for filing the French wealth tax return were set as follows:
| Individual situation | Deadline |
| Non-resident | May 23rd |
| Resident (depends on the départment of residence) | May 23rd (départments 1 to 19)
May 30th (départments 20 to 54) June 6th (départments 55 to 976) |
Deadlines are announced by the French tax administration each year in April.
All taxpayers must declare their liability online at www.impots.gouv.fr, except for first-time filers, who must submit a paper return (Cerfa forms n°2042-IFI and n°2042-IFI COV-K) to the relevant tax office.
Glossary: useful terms to understand the French wealth tax on property (IFI)
Cerfa n°2042-IFI: Reference number of the wealth tax return form.
Deductible Debts: Liabilities related to taxable assets (e.g., mortgages or loans used for purchasing or improving properties) that reduce the taxable base.
IFI: Impôt sur la Fortune Immobilière, or wealth tax on property.
Taxable Assets: Real estate properties, rights, and shares or equity interests in companies with real estate holdings.
Net Taxable Base: Total market value of a household’s real estate assets minus debts related to those assets (e.g., mortgages).
Need some advice on the French wealth tax for expats or non-residents? Contact our team of multilingual French lawyers
