Taxes
France — Tax: Wealth Tax
France levies the Impôt sur la Fortune Immobilière (IFI), a real-estate-only wealth tax, on households whose net taxable real estate assets exceed €1.3 million on 1 January of the tax year. It follows a progressive scale from 0% to 1.5% on net taxable wealth above the threshold. Non-residents are liable on French real estate assets alone if those exceed €1.3 million. Note: the 2026 budget process includes proposed reform to replace or broaden IFI into an 'Impôt sur la fortune improductive' (IFI-i) covering non-productive financial assets as well as real estate — not yet finalized as of this writing.
VerifiedProfessional tax guide — not a government sourcePwC Worldwide Tax Summaries — FranceLast reviewed: 2026-10-18
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
- Value net real estate assets on 1 January — After deducting eligible debts (e.g. mortgages).
- 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.