France — Tax: Wealth Tax

Key Facts

• IFI threshold: €1.3 million net taxable real estate value on 1 January of the tax year.
• Progressive rate scale: 0% to 1.5% depending on net taxable wealth above the threshold.
• Non-residents are liable on French real estate assets alone if those exceed €1.3 million.
• A 2026 budget proposal (IFI-i) may broaden the tax base beyond real estate to include unproductive financial assets — not yet in force.

Steps

1. Value net real estate assets on 1 January — After deducting eligible debts (e.g. mortgages).
2. Compare to the €1.3 million threshold — If exceeded, file the IFI declaration alongside the income tax return.

Costs

• IFI rate range: 0% – 1.5% (progressive, above €1.3m threshold)

Required Documents

• IFI declaration (filed with annual income tax return)

Common Mistakes

• Assuming IFI covers all wealth — it currently applies to real estate assets only (unlike the old ISF it replaced in 2018), pending the proposed IFI-i reform.

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