French Property Wealth Tax (IFI) for Non-Residents

29 juin
9 min de lecture

French property wealth tax, the impôt sur la fortune immobilière (IFI), is an annual tax on net real-estate wealth above a statutory threshold. If you are a non-resident with French property, you are generally taxed only on assets located in France, but the rules on valuation, debt deductions, company shares and filing can still surprise international owners.

This guide explains IFI in plain English for non-resident buyers, sellers and long-term owners of French homes, land and investment property. It covers the €1.3 million threshold, the progressive rate scale, how SCI holdings are treated, what you can deduct, and which declaration forms to use. Figures reflect official French guidance applicable in 2026; your tax adviser or notaire will confirm how they apply to your household.

IFI is declared to the French tax authorities, not collected by the notaire at purchase. Even so, a bilingual notaire is often the first professional to flag IFI exposure when you buy or restructure high-value French property. FrenchNotaires can match you free of charge with a bilingual notaire, usually within about 48 hours, for acquisition planning, SCI deeds or cross-border ownership questions.

What IFI is and who pays it

Since 1 January 2018, France has applied IFI instead of the former broader wealth tax (ISF) on most movable assets. IFI targets real estate and real property rights held on 1 January each year.

You may owe IFI if your net taxable real-estate wealth exceeds €1.3 million on that date. The tax is progressive and declared annually. It is separate from income tax on rent, local property taxes (taxe foncière), transfer duties on purchase, capital gains tax on sale and inheritance tax.

IFI applies to individuals. Couples are generally assessed as one tax household for IFI purposes, even if they opt for separate income-tax treatment. Minor children's reportable assets may also be included where parents legally administer them. Official guidance notes that spouses under a separation-of-property regime living at different addresses, or spouses in authorised separate residence during divorce proceedings, may be assessed independently.

How IFI applies to non-residents

If you are not tax resident in France, IFI generally applies only to:

property and real property rights located in France;
shares or interests in companies (French or foreign) to the extent their value reflects French real estate held directly or indirectly.

Your worldwide property outside France is normally outside French IFI if you remain non-resident, subject to any applicable tax treaty. French nationals who are tax resident in Monaco are treated like French tax residents for IFI purposes under official rules.

Tax residence itself is determined under French domestic law and any double-tax treaty with your country of residence. Because residence affects both IFI scope and other French taxes, read this guide alongside Tax Residence and French Notarial Matters and the broader overview in French Property for Non-Residents: Legal and Notarial Issues.

Returning to France after living abroad

If you transfer your tax domicile back to France after being non-resident during the previous five calendar years, official guidance states that IFI may apply only to French-situ property for up to five years after your return. After that period, French tax residents are generally taxable on worldwide reportable real estate unless a treaty provides otherwise.

The €1.3 million threshold

The €1.3 million figure is a net threshold: gross property values minus allowable debts linked to those assets. You file an IFI return only if net taxable real-estate wealth on 1 January exceeds that amount.

Example: a non-resident couple owns a Paris apartment valued at €1.6 million with an outstanding acquisition loan of €400,000 secured on the property. Net wealth is €1.2 million, so no IFI return is required on that asset alone. Add a €300,000 Provence house with no debt and net French real-estate wealth becomes €1.5 million, triggering IFI obligations.

Valuations are based on market value at 1 January, using official guidance for houses, apartments, land and shares. Under-valuing assets creates compliance risk if the tax authorities challenge the declaration.

What counts as taxable property

Unless treated as business assets, taxable property generally includes:

residential and commercial buildings;
building land and farmland (subject to specific exemptions);
property under construction on 1 January;
real property rights such as usufruit (usufruct), nue-propriété (bare ownership) and certain long-term leasehold rights;
company shares to the extent of underlying French real estate.

Property used for a professional activity may be exempt if it qualifies as a business asset under the detailed tests in the General Tax Code. Holiday homes, secondary residences and rental investments are typically within scope.

Some categories benefit from partial exemptions, including certain woodland, managed forests and rural property let under long-term farm leases. These exemptions are technical; check eligibility with a tax adviser if they may apply.

Debts, abatements and exemptions

Deductible debts

You may deduct debts that relate to taxable assets, generally loans used to acquire, improve, repair or maintain reportable property. Debts must exist on 1 January and be adequately documented. Deductions are limited to debts connected with taxable assets, or apportioned where a loan finances mixed assets.

Recent finance-law rules can cap deductible acquisition debt on high-value properties in certain cases. Because these caps evolve, treat debt planning as something to verify each year rather than a one-off calculation at purchase.

30% abatement on your main home

If a property is your main residence on 1 January, a 30% abatement applies to its value for IFI purposes. For many non-residents, a French property is a secondary or holiday home, so this abatement may not apply. If you keep a main home abroad and a secondary residence in France, the French property is usually valued in full (before debt).

Dismemberment of ownership

Where ownership is split between usufruit and nue-propriété, IFI is generally due from the person who holds the taxable right according to the statutory allocation rules. This can matter for estate planning and family transfers. See Usufruct in France: What It Means for Estate Planning.

IFI rates and decote relief

IFI is calculated on net taxable wealth using a progressive scale. Each band applies only to the portion of wealth within that band.

	IFI rate scale (net taxable real-estate wealth)
Net taxable wealth	Rate applied to the band
Not exceeding €800,000	0%
€800,001 to €1,300,000	0.5%
€1,300,001 to €2,570,000	0.7%
€2,570,001 to €5,000,000	1%
€5,000,001 to €10,000,000	1.25%
Above €10,000,000	1.5%

Decote for wealth just above the threshold

If net taxable wealth is between €1.3 million and €1.4 million, a décote ( taper relief ) reduces IFI so that liability rises gradually rather than jumping immediately. The formula published in official guidance is:

IFI = €17,500 − (1.25% × net taxable wealth)

Once net wealth reaches €1.4 million, the decote no longer applies and the full scale is used in the ordinary way.

Illustration: net French real-estate wealth of €1.35 million might produce an IFI bill noticeably below what a straight application of the band rates would suggest, whereas €2 million of net wealth can generate a recurring annual charge in the low tens of thousands of euros depending on debt and abatements.

Direct ownership, SCI and company shares

Buying through an SCI (société civile immobilière) does not remove IFI exposure. Non-residents holding SCI shares are taxed on the fraction of share value attributable to French real estate held by the company.

IFI therefore follows economic ownership of French property, not just direct title in your personal name. Compare personal and SCI routes before buying in Buying a French Property Through an SCI: Pros and Cons and SCI in France: Advantages and Disadvantages for Foreign Owners.

Corporate structures used for commercial rental or development may qualify for business-asset treatment in some cases, but the tests are strict. A structure chosen mainly for IFI avoidance may fail if the property is effectively a passive holding.

Planning a high-value French purchase?

A bilingual notaire can explain how the deed, ownership structure and financing affect your long-term French tax exposure, including IFI, capital gains and succession.

Speak to a Notaire · Free matching · 48-hour response · In person or video

How to declare and pay IFI

IFI is a self-assessed annual tax. If you are liable, you must file even if no bill is sent proactively.

Which form to use

If you also declare French income: append form 2042-IFI (or the pre-filled 2042-IFI-K) to your main income-tax return 2042, after ticking the IFI box on the return.
If you have no French income to declare but net French real-estate wealth exceeds €1.3 million: file form 2042-IFI-COV (with annex 2042-IFI or pre-filled 2042-IFI-SK).

Forms are available on impots.gouv.fr. Online filing is mandatory if you have internet access at home. The reference date is always 1 January of the tax year (for a return filed in 2026, the relevant snapshot is 1 January 2026).

Deadlines and payment

IFI follows the income-tax calendar for non-residents, typically between late spring and early summer for paper or online filing. Payment is due on receipt of the IFI assessment notice. If the amount exceeds €300, online payment is mandatory.

Non-residents outside the European Economic Area may be asked to appoint a representative in France to receive IFI correspondence. Keep your contact details and property valuations updated in your online tax account.

Where the notaire fits in

The notaire does not calculate or collect IFI each year. IFI is between you and the French tax administration. The notaire's role is nonetheless important at key moments:

On purchase: the deed records price, ownership structure and mortgage details that later support IFI valuations and debt deductions.
On restructuring: gifts, SCI transfers, usufruct splits and marriage contracts can change who holds taxable rights. See Giving Assets to Children in France.
On sale: disposing of French property removes it from future IFI bases, while capital gains tax may apply separately. See Capital Gains Tax on French Property for Non-Residents.

For annual IFI computation, most non-residents rely on a French tax adviser or accountant. The notaire remains your point of contact for authentic deeds and land-registry changes.

Practical planning for foreign owners

Model IFI before you buy: high-value Riviera, Alpine or Paris acquisitions can carry recurring IFI alongside local taxes and insurance.
Keep loan and improvement records: deductible debt and valuation support depend on documentation kept over many years.
Review structure periodically: SCI shares, bare ownership gifts and cross-border mortgages change the net base.
Do not confuse IFI with capital gains tax: IFI is annual on ownership; capital gains tax applies once on sale.
Coordinate with home-country tax advice: IFI does not replace reporting obligations where you live.
Calendar the declaration: missing IFI filing triggers penalties even if tax would have been modest.

If you are below the threshold today but expect property values to rise, plan early. Crossing €1.3 million net on 1 January creates a filing duty for that year even if values fall later.

Frequently Asked Questions

Do non-residents pay French property wealth tax?

Yes, if their net French real-estate wealth exceeds €1.3 million on 1 January. Non-residents are generally taxed only on property and reportable property rights in France, plus relevant company shares, not on real estate held abroad.

What is the IFI threshold in France?

The filing threshold is net taxable real-estate wealth of €1.3 million on 1 January. Net means market value minus allowable debts linked to the taxable assets.

What are the IFI rates?

IFI uses a progressive scale from 0% up to 1.5%, applied band by band on net taxable wealth. A decote formula softens the tax for net wealth between €1.3 million and €1.4 million.

Does an SCI avoid IFI in France?

No. IFI generally applies to SCI shares in proportion to French real estate held by the company. Holding property through an SCI changes governance and transfer mechanics, but not the basic fact that French real estate wealth can attract IFI.

Is IFI the same as capital gains tax?

No. IFI is an annual tax on owning reportable property above the threshold. Capital gains tax applies when you sell at a profit. You may face both during ownership and again on disposal, subject to separate rules.

Can I deduct my French mortgage from IFI?

Generally yes, if the loan relates to taxable French property and exists on 1 January. Caps and conditions apply, especially for high-value assets and certain loans. Keep notaire deeds and bank statements.

Which form do non-residents use for IFI?

If you declare French income, append form 2042-IFI to return 2042. If you have no French income but owe IFI, file form 2042-IFI-COV with the IFI annex. Online filing is required if you have home internet access.

Does the notaire handle IFI for me?

Not annually. The notaire prepares purchase and transfer deeds and may warn you about IFI at acquisition, but each owner must file IFI with the tax authorities when liable. Consult a tax adviser for the annual return.

Speak to a bilingual notaire about French property ownership

Before buying, gifting or restructuring high-value French property, understand how the deed affects IFI, succession and resale tax. FrenchNotaires can match you with a bilingual notaire within 48 hours, including through local pages such as Notaire Paris and Notaire Cannes.