{"id":8521,"date":"2023-03-03T13:34:25","date_gmt":"2023-03-03T13:34:25","guid":{"rendered":"https:\/\/www.consultants-immobilier.com\/?page_id=8521"},"modified":"2023-03-03T13:59:54","modified_gmt":"2023-03-03T13:59:54","slug":"ifi","status":"publish","type":"page","link":"https:\/\/www.consultants-immobilier.com\/en\/tax-and-wealth-guides\/ifi\/","title":{"rendered":"IFI"},"content":{"rendered":"
[vc_row full_width=”stretch_row_content” content_placement=”top” css=”.vc_custom_1670852810251{background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}” el_class=”back_div”][vc_column css=”.vc_custom_1657728499249{padding-right: 15px !important;padding-left: 15px !important;}”][vc_raw_html]JTNDZGl2JTIwY2xhc3MlM0QlMjJteV9iYWNrX2J1dHRvbiUyMiUzRSUwQSUwOSUwOSUwOSUwOSUwOSUwOSUzQ2ElMjBocmVmJTNEJTIyaHR0cHMlM0ElMkYlMkZ3d3cuY29uc3VsdGFudHMtaW1tb2JpbGllci5jb20lMkZlbiUyRnByb3BlcnR5LWd1aWRlcyUyRiUyMiUzRSUzQyUyMEJhY2slMjB0byUyMHByb3BlcnR5JTIwZ3VpZGVzJTNDJTJGYSUzRSUwQSUwOSUwOSUwOSUwOSUwOSUzQyUyRmRpdiUzRQ==[\/vc_raw_html][\/vc_column][\/vc_row][vc_row css=”.vc_custom_1677744498972{background-image: url(https:\/\/www.consultants-immobilier.com\/wp-content\/uploads\/2023\/03\/ifi-pexels-antoni-shkraba-5292197.webp?id=8522) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}” el_class=”override_left”][vc_column css=”.vc_custom_1657728499249{padding-right: 15px !important;padding-left: 15px !important;}”][\/vc_column][\/vc_row][vc_row el_class=”override_pos”][vc_column][vc_row_inner css=”.vc_custom_1662026446228{background-color: #e4e4e4 !important;}”][vc_column_inner][vc_custom_heading text=”What is the IFI, the tax on real estate wealth in France?” font_container=”tag:h1|font_size:37|text_align:center|color:%23040e31″ use_theme_fonts=”yes” css=”.vc_custom_1677744897589{padding-right: 20px !important;padding-bottom: 30px !important;padding-left: 20px !important;}” el_class=”relative_pos”][\/vc_column_inner][\/vc_row_inner][vc_row_inner el_class=”firstblock” css=”.vc_custom_1668613473269{background-color: #ffffff !important;}”][vc_column_inner][vc_column_text]The real estate wealth tax (IFI), which replaces the solidarity tax on wealth (ISF), aims to tax real estate assets when their value exceeds 1.3 million euros. This tax is calculated according to a degressive scale provided for in Article 977 of the General Tax Code.<\/a> The declaration of the \u00a0tax on real estate wealth occurs at the same time as the declaration of the income tax, but its calculation can sometimes seem more delicate. Taxable property, tax rates and reductions… Here is all the useful information to properly declare the tax on real estate wealth.<\/p>\n The real estate wealth tax concerns all persons who hold real estate assets with a net value of more than 1.3 million euros. This patrimony includes all immovable property, built and unbuilt buildings, outbuildings and property classified as a historic monument held by a natural person on 1 January of the tax year. It also concerns real estate rights such as usufruct, right of use or rights represented by shares in real estate companies, as well as real estate assets. The tax household taken into account consists of a person living alone (single, widowed, divorced, separated) or a couple, regardless of their situation (marriage, PACS, cohabitation) and including dependent minor children.<\/p>\n The real estate wealth tax is calculated in relation to a progressive scale that starts at \u20ac 800,000. Note that you are only subject to real estate wealth tax from 1.3 million euros of real estate assets, but that the calculation takes into account your property from 800,000 \u20ac. The tax rate ranges from 0.5% to 1.5% of the value of the declared wealth.<\/p>\n This calculation is then reduced by various elements depending on the case:<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 30% of the market value of the dwelling considered as the principal residence;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 property tax;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 financial debts, such as a bank loan;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 debts resulting from repair, maintenance, improvement, construction, reconstruction or expansion work.<\/p>\n Note, however, that in a cohabitation situation, if everyone has a principal residence, it will be necessary to make a choice regarding the one to which the 30% abatement will apply.<\/p>\n It is possible to benefit from a discount. Indeed, assets whose value is between 1.3 and 1.4 million euros benefit from a reduction, according to the formula 17500 – (1.25% x the amount of taxable net wealth).<\/p>\n In addition, if you make a donation to an association or foundation recognized as being of public utility, you can obtain a reduction on the amount of your real estate wealth tax. This reduction provided for by Article 978 of the General Tax Code<\/a> can go up to 75% of donations made within the limit of \u20ac 50,000.<\/p>\n The real estate wealth tax is calculated from the assets of a tax household, composed of a single person or a couple, with or without children. Taxable property and rights include:<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 buildings such as houses and apartments, main and secondary residences, as well as their outbuildings;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 undeveloped buildings such as building land or agricultural land;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 buildings under construction on 1 January of the tax year;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 buildings classified as a historical monument;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 buildings held indirectly by shares in real estate companies;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 immovable property rights (usufruct, right of use, etc.) and those which do not meet the conditions to be considered as professional property.<\/p>\n Unlike the solidarity tax on wealth, the real estate wealth tax only taxes real estate assets. Movable property and financial property are not affected by taxation. The following are excluded from the patrimony:<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 furniture;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 works of art:<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 professional real estate;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 financial investments (PEE, PEA, securities accounts, etc.);<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 furnished rental properties (if they have the status “professional furnished rental”).<\/p>\n The scale for calculating the IFI is as follows:<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 from \u20ac0 to \u20ac800,000: 0%;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 from \u20ac800,001 to \u20ac1,300,000: 0.5%;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 from \u20ac1,300,001 to \u20ac2,570,000: 0.7%;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 from \u20ac2,570,001 to \u20ac5,000,000: 1%;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 from \u20ac5,000,000 to \u20ac10,000,000: 1.25%;<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0 over \u20ac10,000,000: 1.5%.<\/p>\n In the same way as income tax, real estate wealth tax must be declared by the taxpayer via formNo<\/sup>.2042-IFI.<\/a> To be sure to declare all of his real estate assets, the owner must make a fair estimate of the value of his property subject to real estate wealth tax.<\/p>\nWho is affected by IFI?<\/h2>\n
How to calculate your IFI?<\/h2>\n
How to reduce IFI?<\/h2>\n
Property taxable to the IFI<\/h2>\n
The IFI tax rate<\/h2>\n
How do I make the IFI declaration?<\/h2>\n