Calculation of the real estate wealth tax (IFI)

Verified 01 January 2023 - Directorate for Legal and Administrative Information (Prime Minister)

You have to pay real estate wealth tax (IFI) if the net worth of your property assets exceeds €1 300 000. The IFI is calculated by applying a progressive scale to the net taxable real estate assets. One discount is provided for assets not exceeding a certain threshold. The IFI is capped after potential tax cuts.

L'IFI: titleContent is calculated on the net worth of your taxable assets to 1er January 2023, i.e. after deduction of debts existing at that date, provided that they can be justified.

It may be a debt related to the following:

  • Acquisition of taxable property or rights in immovable property (immovable property borrowings)
  • Improvement, construction, reconstruction or expansion work
  • Acquisition of shares in proportion to the value of the taxable immovable property and rights
  • Maintenance work owed by the landlord, or paid by the landlord on behalf of the tenant but for which he was unable to obtain reimbursement by December 31 of the year of departure of the tenant
  • Payment of taxes due on the properties concerned (e.g. property tax or inheritance tax)

On the other hand, the taxes payable by the occupier are not deductible.

The part of your tax corresponding to your real estate income is also not deductible (property income for example).

You can estimate the amount of the IFI you will have to pay with the following simulator:

Real estate wealth tax simulator (IFI)

The IFI is calculated on the value of your taxable net wealth using the following scale:

Tableau - IFI scale

Share of net taxable value of assets

Applicable rate

Up to €800,000

0%

Enter €800,001 and €1 300 000

0.50%

Enter €1,300,001 and €2,570,000

0.70%

Enter €2,570,001 and €5 000 000

1%

Enter €5,000,001 and €10 000 000

1.25%

Greater than €10 000 000

1.50%

Warning  

the tax threshold for the IFI is €1 300 000. However, when you are taxable at the IFI, the scale is applied from €800,000.

If you are declaring a balance sheet with a value between €1 300 000 and €1,400,000, you benefit from a discount which is deducted from the IFI amount calculated according to the current scale.

The amount of the haircut shall be calculated as follows: €17,500 - 1.25% the net taxable value of the assets.

Example :

Net assets taxable at 1er january 2023: €1,350,000

Gross IFI = (€500,000 x 0.5%) + (€50,000 x 0.7%) = €2,500 + €350 = €2,850

Applicable haircut = €17,500 - (€1,350,000 x 1.25%) = €625

IFI Amount = €2,850 - €625 = €2,225

In case of donations to general interest organizations, you receive an IFI discount equal to 75% donations made, up to €50,000.

In 2023, the IFI is capped according to the cumulative amount of your taxes.

Income Tax 2022 (social security contributions and exceptional contribution on high incomes included) added to IFI 2023 must not exceed 75% revenues received in 2022.

In case of overrun, the difference is deducted from the IFI amount.

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