Property Wealth Tax in France

‘Impôts sur le fortune immobilière’ (IFI) is an evolution of wealth tax, which was one of the largest obstacles to moving to France for many people with significant assets.

The good news is that, as of 1st January 2018, this type of french wealth tax is only applied to property assets. However, it may also be applied to funds investing in property.

About property wealth tax in France

Property wealth tax is payable on an annual basis by any household owning taxable assets worth over the threshold on 1st January. Payment is due in June. There is no tax for those with below €1,300,000 in assessable assets.

Assessable net asset values	Percentage applicable

Below €800,000	0.00%
Between €800,000 – €1300,000	0.50%
Between €1,300,000 – €2,570,000	0.75%
Between €2,570,000 – €5,000,000	1.00%
Between €5,000,000 – €10,000,000	1.25%
Above €10,000,000	1.50%

Unmarried couples will be taxed together for property wealth tax, even though they are not taxed together for other taxes. A real estate wealth tax is assessed using the total sale value of assessable assets, although a 30% allowance is given against the value of your main residence.

You may also deduct your local taxes, income tax and even your theoretic wealth tax bill as liabilities. Certain business assets are also exempt.

Nearly everyone we talk to is surprised at the level of property wealth tax they will have to pay, with the bill being significantly lower than they expected, and with this change to applying only to property means that far fewer people will be affected by it.

For those that are, there are many ways to reduce it; it just requires careful planning.

How Can Kentingtons Help?

As a leading financial and tax advisor in France, Kentingtons is able to draw on our years of experience and knowledge to help advise out clients on all aspects relating to property wealth tax in France. For more information about how we may be able to help you, please contact us using the enquiry form below.