Introduction
The IFI, or Real Estate Wealth Tax, is a French tax that applies to taxpayers holding a net taxable real estate wealth exceeding 1.3 million euros. Replacing the ISF (Solidarity Tax on Wealth) since 2018, the IFI specifically targets real estate assets, excluding other forms of wealth such as financial investments. Understanding who is concerned by this tax and how to calculate it is essential to anticipate tax obligations and optimize wealth management.
What is the IFI and who is concerned?
The IFI applies to individuals fiscally domiciled in France whose net value of real estate assets exceeds the threshold of 1.3 million euros on January 1st of the tax year. This wealth includes real estate properties held directly, shares in real estate companies (under certain conditions), as well as real estate rights (usufruct, bare ownership).
Non-residents are also concerned only for the value of their real estate assets located in France. Note that debts related to the acquisition or maintenance of real estate assets are deductible, which can reduce the taxable base.