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Real estate wealth tax (IFI): persons and property concerned

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

Do you have a sizeable real estate portfolio? You are subject to real estate wealth tax (IFI) if your net worth overshoot €1 300 000. This includes all property and real estate rights held directly and indirectly at 1er January. Some goods are partially or fully exempt. Some debts can be deducted from the value of your wealth before tax.

You are subject to the IFI when the net taxable value of your real estate assets exceeds €1 300 000 to 1er january 2023.

Tax shelter

The IFI report shall take into account the real estate held by all persons making up the tax shelter.

The IFI tax household is composed of one of the following 2 ways:

  • A person living alone, whether single, widowed, divorced or separated
  • Two people living as a couple

In all cases, the property of minor children for whom you have the legal administration of the property is taken into account.

Please note

divorced or separated parents jointly exercising parental authority may each declare half the value of the property of their minor children.

Origin of heritage

Your taxation depends on your tax domicile :

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Your tax domicile is in France

Taxation concerns all real estate assets or rights, shares or shares of real estate businesses held in France and abroad of the household.

FYI  

if you have just transferred your tax domicile to France after having been domiciled abroad for the previous 5 calendar years, you are only taxed on real estate and rights owned in France. This tax only on assets located in France lasts for 5 years.

Your tax domicile is abroad

The following property is taxable:

  • Property and real estate rights owned in France held by your household
  • Shares or shares owned by you or your household in real estate businesses in France
  • Shares or shares owned by you or your household in real estate businesses owning real estate in France and abroad, up to the amount of the property and rights owned in France

You must declare the following items:

  • Built real estate (for personal use or for rent): houses, apartments and their outbuildings (garage, parking, cellar...)
  • Classified buildings historic monument
  • Real estate under construction on 1er january 2023
  • Non-built real estate (building land, agricultural land...)
  • Real estate or parts of real estate represented by shares in real estate businesses
  • Real estate rights (usufruct, right of use or of residence...)

FYI  

your principal residence is subject to a abatement of 30% on its value at 1er January 2023.

You can estimate the value of a property using the Patrim online service, accessible from your personal telecounter space.

Taxes: access your Special Space

Under certain conditions, partial or total exemptions are provided for in the following cases:

  • Real estate used for your business
  • Timber and forests under commitment to exploitation or for professional use
  • Rural property rented for long-term or professional use (agricultural land, buildings and farm equipment)
  • Rented dwellings furnished under the tax regime of the renter in furnished professional

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Usufruct

The usufruct must be declared.

The usufructuary integrates the property for its value in full ownership.

However, if the law provides for taxation divided between the usufructuary and the naked owner(s), the distribution is made according to a scale established according to the age of the usufructuary.

To determine the distribution, you can use the following simulator:

Simulator: tax scale for usufruct and naked property

Right of use or habitation

It has to be declared.

Right of the lessee to construct

It has to be declared.

Ownership of real estate

The bare owner of immovable property does not have to report it to the IFI, because the usufructuary has the obligation to declare the value of the property in full ownership.

Nevertheless, the naked owner must declare the value of the naked property if the law provides for a division of the tax between the usufructuary and the un(s)-owner(s).

In this case, the value of the bare property and that of the usufruct are calculated according to a scale established according to the age of the usufructuary.

To determine the distribution, you can use the following simulator:

Simulator: tax scale for usufruct and naked property

Temporary right to housing enjoyed by the surviving spouse, subject to conditions

No statement.

Some real estate-related investments are reportable to the IFI, including:

  • Shares or shares in businesses or bodies owning real estate in France. You must report the value representing the assets held by the business or organization. However, real estate thus held indirectly is not taken into account if you own less than 10% the capital of the owning business, or under certain conditions, where such immovable property is used for the business of the owning business or a related business
  • Property and immovable rights transferred in trust or placed in a trust for their market value to 1er january 2023
  • Fraction of surrender value at 1er january 2023 representative of taxable real estate assets included in units of account of life insurance contracts

FYI  

real estate assigned to the operational activity of a business is excluded from the plate from the IFI.

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).

Who can help me?

Find who can answer your questions in your region

  • For general information

    Tax Information Service

    By telephone:

    0809 401 401

    Monday to Friday from 8:30 am to 7 pm, excluding public holidays.

    Free service + call price

  • To contact the local service managing your folder

    Department in charge of taxes (treasury, tax department...)