Real estate wealth tax (IFI): persons and property concerned
Verified 20 February 2025 - 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. We present the applicable rules.
You are subject to the IFI when the net taxable value of your real estate assets exceeds €1 300 000 to 1er january 2025.
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 2025
- Non-built real estate (building land, agricultural land...)
- Real estate or parts of real estate represented by shares in real estate businesses
- Rights in immovable property (usufruct, right of use or residence...)
- Shares or shares held in businesses or bodies owning property or rights in immovable property up to the value of the immovable assets.
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 immovable or immovable property. rights in immovable property, shares or shares in real estate businesses held in France and abroad.
FYI
If you have just transferred your tax domicile to France after having been domiciled abroad during the 5 calendar years You are only taxed on real estate and property 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
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Your tax domicile is in France
Taxation concerns all immovable or immovable property. rights in immovable property, shares or shares in real estate businesses held in France and abroad.
FYI
If you have just transferred your tax domicile to France after having been domiciled abroad during the 5 calendar years You are only taxed on real estate and property 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
Some real estate-related investments are reportable under the IFI, including:
- Shares or shares in businesses or bodies owning real estate in France. You must report the value representing the real property 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 2025
- Fraction of surrender value at 1er january 2025 representative of taxable real estate assets included in units of account of redeemable life insurance contracts
FYI
Real estate assigned to the operational activity of a business is excluded from the plate from the IFI.
There are special rules for reporting to the IFI, when the ownership of a property is dismembered between several people.
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Usufruct
L'usufruct is the right to enjoy property which is not wholly owned.
The bare-ownership is the right to dispose of property of which another person is entitled.
Your situation with regard to the IFI varies depending on whether you are a usufructuary or a naked owner.
Usufructuary
As a rule, the usufructuary must declare the property to the IFI.
The usufructuary integrates the property into its heritage for its freehold value.
However, in some cases, the act provides for apportioned taxation between the usufructuary and the naked owner(s), for example for the legal usufruct of the surviving spouse resulting from an inheritance.
The usufructuary must then declare the property only for the fraction that he holds and its value as usufruct.
The value of the usufruct is determined according to a tax scale which depends on the age of the usufructuary.
You can use a simulator to determine the value distribution between the usufructuary and the naked owner:
Nu-owner of a property
The bare owner of immovable property shall not not declare it to the IFI, because the usufructuary has an obligation to declare the property for its value in full ownership.
However, in some cases, the act provides for apportioned taxation between the usufructuary and the naked owner(s), for example for the legal usufruct of the surviving spouse resulting from an inheritance.
The naked owner must then declare the property only for the fraction he holds and its value in naked ownership.
The value of the bare property and that of the usufruct are calculated according to a tax scale established according to the age of the usufructuary.
You can use a simulator to determine the value distribution between the usufructuary and the naked owner:
Right of use or habitation
The right of use and the right of dwelling are limited rights of enjoyment of property that is not fully owned.
The imposition on the IFI of a right of use or residence shall be treated as the imposition of a right of usufruct.
In principle, the beneficiary of a right of use or residence must declare in its heritage the freehold value of the property to which his right relates.
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Usufruct
L'usufruct is the right to enjoy property which is not wholly owned.
The bare-ownership is the right to dispose of property of which another person is entitled.
Your situation with regard to the IFI varies depending on whether you are a usufructuary or a naked owner.
Usufructuary
As a rule, the usufructuary must declare the property to the IFI.
The usufructuary integrates the property into its heritage for its freehold value.
However, in some cases, the act provides for apportioned taxation between the usufructuary and the naked owner(s), for example for the legal usufruct of the surviving spouse resulting from an inheritance.
The usufructuary must then declare the property only for the fraction that he holds and its value as usufruct.
The value of the usufruct is determined according to a tax scale which depends on the age of the usufructuary.
You can use a simulator to determine the value distribution between the usufructuary and the naked owner:
Nu-owner of a property
The bare owner of immovable property shall not not declare it to the IFI, because the usufructuary has an obligation to declare the property for its value in full ownership.
However, in some cases, the act provides for apportioned taxation between the usufructuary and the naked owner(s), for example for the legal usufruct of the surviving spouse resulting from an inheritance.
The naked owner must then declare the property only for the fraction he holds and its value in naked ownership.
The value of the bare property and that of the usufruct are calculated according to a tax scale established according to the age of the usufructuary.
You can use a simulator to determine the value distribution between the usufructuary and the naked owner:
Right of use or habitation
The right of use and the right of dwelling are limited rights of enjoyment of property that is not fully owned.
The imposition on the IFI of a right of use or residence shall be treated as the imposition of a right of usufruct.
In principle, the beneficiary of a right of use or residence must declare in its heritage the freehold value of the property to which his right relates.
You must report each item subject to the IFI at its actual market value, that is, the price at which it could have been sold on the market on 1er January of the taxation year.
You can estimate the value of a property using the Patrim online service, accessible from your personal telecounter space:
Taxes: access your Special Space
Your principal residence is subject to a abatement of 30% on its value at 1er January 2025.
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 accommodation furnished under the tax treatment of the renter of professional furniture.
L'IFIIFI : Real estate wealth tax is calculated on the net worth of your taxable assets to 1er january 2025, i.e. after deduction of debts existing at that date, provided that they can be justified.
The debts relate to the assets which constitute the assets taxable on 1er January.
If the real estate is owned by a business, the debts of the business can be deducted only for their share relating to real property.
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 the amount of the value of the taxable property and immovable property
- 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).
In contrast, the occupant's taxes are not deductible (e.g., housing tax).
The part of your tax corresponding to your real estate income is also not deductible (property income for example).
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