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You must pay the property tax (IFI) if the net value of your property exceeds €1.3 million. The IFI is calculated by applying a progressive scale to the taxable net real estate assets. One haircut is intended for assets not exceeding a certain threshold. The IFI is capped after possible tax reductions.
TheIFI is calculated on the net value of your taxable estate 1to January 2022, i.e. after deduction of debts existing on that date, provided that they can be justified.
This may include a debt for the following expenses:
- Acquisition of taxable property or immovable rights (mortgages)
- Improvement, construction, reconstruction or extension work
- Acquisition of shares or shares in proportion to the value of taxable property and immovable rights
- Maintenance work due by the landlord or paid by the landlord on behalf of the tenant but not refunded by the landlord on December 31 of the tenant's year of departure
- Payment of taxes due on the property concerned (e.g.: property tax or inheritance tax)
On the other hand, the taxes imposed on the occupant are not deductible (e.g. residential tax).
The portion of your tax corresponding to the income of your real estate is not deductible (land income for example).
You can estimate the amount of IFI you will have to pay with a simulator.
Real estate tax simulator (IFI)
Ministry of Finance
The IFI is calculated on the value of your taxable net assets by applying the following scale:
Portion of the taxable net asset value
Up to €800 000
Between €800,001 and €1 300 000
Between €1,300,001 and €2 570 000
Between €2,570,001 and €5 000 000
Between €5 000 001 and €10 000 000
Greater Than €10 000 000
If you report a property whose value is between €1 300 000 and €1 400 000, you benefit from a discount which is charged to the amount of the IFI calculated according to the current scale.
The discount amount is calculated as follows: €17,500 - 1.25% of the taxable net worth of the property.
Net assets taxable at 1to January 2022: €1.35 million
Gross IFI = (500 000 € x 0.5%) + (€50 000 x 0.7%) = €2,500 + €350 = €2,850
Applicable discount = €17,500 -€1.35 million x 1.25%) = €625
IFI Amount = €2,850 - €625 = €2,225
In case of donations to organisations of general interest, you benefit from an IFI reduction equal to 75% donations made, up to €50 000.