Wealth Tax Uncovered: Who Pays What and When?
In France, the wealth tax—known as the “Impôt sur la Fortune Immobilière” (IFI)—is levied on real estate assets that exceed a certain value. This article explains who is subject to this tax, what it entails, how it is calculated, and when it must be declared.
Who is liable for the IFI?
Anyone residing in France who owns a real estate portfolio with a net value exceeding €1.3 million is subject to the IFI. Non-residents of France who own property located in France may also be liable for the tax.
What is included in the IFI?
The IFI is a tax on the ownership of real estate, whether held directly (in personal name) or indirectly (via shares in a company). The situation is assessed per tax household: an adult child—whether still dependent or not—is considered a separate tax household for IFI purposes.
How is the IFI calculated?
Taxpayers must determine the value of their real estate assets themselves. This valuation must reflect the market value as of January 1st of the tax year. Certain debts that are directly related to the purchase, maintenance, or improvement of the real estate may—under specific conditions—be deducted from the gross value.
IFI Tax Rate Structure
The IFI applies a progressive tax rate, starting at 0.5% and increasing up to 1.5% for estates exceeding €10 million. Below is an overview of the applicable tax brackets:
| Net taxable value of Assets |
Tax rate |
|---|---|
| Up to €800.000 |
0% |
| €800.001 to €1.300.000 |
0,5% |
| €1.300.001 to €2.570.000 |
0,7% |
| €2.570.001 to €5.000.000 |
1,0% |
| €5.000.001 to €10.000.000 |
1,25% |
| Over €10.000.000 |
1,5% |
When must the IFI be declared?
The IFI is declared together with the income tax return (Impôt sur le Revenu). Deadlines vary depending on the taxpayer’s department and whether they are a French resident. For the 2025 tax year, the online filing deadlines are as follows:
- Non-residents: May 22, 2025
- French residents:
- Departments 1 to 19: May 22, 2025
- Departments 20 to 54: May 28, 2025
- Other departments: June 5, 2025
- Departments 1 to 19: May 22, 2025
The deadline for paper filings is May 20, 2025. Meeting these deadlines is essential to avoid penalties or other sanctions.
Conclusion
The IFI targets individuals with significant real estate wealth in France. A correct declaration requires an understanding of valuation methods, deductible debts, and progressive rates, in order to remain compliant with tax obligations. Our RFN experts are here to guide you through the process. Make sure to get in touch on time!