TVVI vs IFI vs Local Taxes: French Property Tax Comparison for Non-Residents
- 12 août
- 7 min de lecture
Non-resident owners often mix three very different French charges: the annual 3% entity tax (taxe sur la valeur vénale des immeubles, TVVI), the personal IFI wealth tax, and local property taxes such as taxe foncière and second-home taxe d'habitation.
Paying one does not cancel the others. Confusing them is how a UK Ltd owner misses a 2746-SD filing, or how an individual under-budgets IFI above €1.3 million.
This page is a side-by-side comparison for 2026–2027, then short scenarios showing when the taxes stack. Deep dives live in the linked guides; start here when you need the map.
FrenchNotaires matches you free of charge with vetted bilingual notaires, typically within about 48 hours, in person or by video call. A notaire will not prepare your IFI or TVVI return, but can clarify who appears on title before your tax adviser models the annual bill.
Quick answer: which tax is which?
TVVI: aimed at legal entities (companies, trusts, comparable institutions). Punitive 3% of gross market value unless an exemption applies. Usually avoided by disclosure (form 2746-SD), not by living abroad.
IFI: aimed at individuals. Progressive rates on net French real-estate wealth above €1.3 million (2026). Non-residents are taxed on French-situs assets only.
Local taxes: commune-level bills tied to the property (mainly taxe foncière; often taxe d'habitation on furnished second homes). Based on cadastral bases and local rates, not on your worldwide wealth.
If you own personally, ignore TVVI for yourself as an individual, but still budget local taxes and possibly IFI. If a company or trust sits on title, add a TVVI analysis on top.
Comparison table
TVVI (3% tax) | IFI | Local taxes | |
French name | Taxe sur la valeur vénale des immeubles (TVVI) | Impôt sur la fortune immobilière | Mainly taxe foncière; also second-home taxe d'habitation, vacant-home taxes, TEOM where levied |
Who is in scope? | Legal entities (French or foreign), with or without legal personality: companies, partnerships, trusts, foundations, comparable institutions | Individuals (natural persons), including non-residents | Owners (and, for some habitation taxes, statutory occupants) of the property |
What is taxed? | French real estate / real property rights held on 1 January, directly or through interposed entities | Net French real-estate wealth on 1 January (non-residents: French-situs assets, including certain SCI interests) | The building/land itself, via cadastral rental values × rates voted locally |
Rate / scale (2026) | Flat 3% of gross market value if due | Progressive 0.5% to 1.5% once liable (scale starts from €800,000 of net base) | Varies by commune; cadastral bases revalued about +0.8% for 2026 before local rate decisions |
Debt deduction? | No (gross value) | Yes, debts linked to taxable assets within statutory limits | Not a wealth calculation; you pay the billed amount |
Entry threshold | No €1.3M wealth threshold; exemptions and de minimis tests apply (e.g. under €100,000 / 5% per property in some cases) | Net taxable base above €1.3 million | No IFI-style threshold; almost every owned property generates at least taxe foncière |
Usual way to avoid payment | Fit an exemption: often annual disclosure on 2746-SD (or SCI 2072 / 2038 where that dispenses from 2746). From 2027, standing commitment letters no longer suffice | Stay under €1.3M net; legitimate debt; main-home 30% abatement only for residents on their principal residence (not for typical non-resident second homes) | Limited reliefs/exemptions by status or works; otherwise due even if vacant |
Main form / channel | 2746-SD e-filing (SIREN + professional space); deadline 15 May | 2042-IFI (non-residents without French income: also 2042-IFI-COV) | Notices from the tax office; pay via impots.gouv.fr / SEPA |
2027 reform angle | Annual filing + French representative (CGI art. 990 FA) for entities without a French PE | No equivalent TVVI reform; keep annual IFI watch if near the threshold | Ongoing local-rate and surcharge policy (e.g. second-home TH majoration 5–60% in tense zones) |
Primary purpose | Anti-avoidance / ownership transparency for opaque structures | Personal wealth tax on real estate | Fund local public services |
TVVI (3% tax) in one minute
Legal base: CGI Articles 990 D to 990 G. The tax equals 3% of the gross market value of French immovable property (or real rights) held on 1 January by a legal entity. Mortgages do not reduce the base. Interposed entities can be jointly liable (Article 990 F).
Most legitimate structures never pay, because exemptions exist. The disclosure-based route that foreign companies use requires annual information (in practice form 2746-SD) by 15 May. Law no. 2026-534 of 25 June 2026 abolishes the old one-off engagement de communiquer for the 2027 campaign and requires entities without a French permanent establishment to name a French representative (Article 990 FA).
Guides: TVVI Reform 2027, Form 2746-SD, SIREN and E-Filing.
IFI in one minute
Legal base: CGI Articles 964 and following. You are in scope for 2026 if your net taxable real-estate wealth exceeds €1.3 million on 1 January. Non-residents generally count only French-situs real estate and certain rights or company interests representing French property.
Once liable, tax is calculated on a progressive scale from 0.5% to 1.5%. The scale applies from €800,000 of net taxable base (not from €1.3 million). A décote softens the entry between €1.3 million and €1.4 million. Debts tied to the assets can reduce the base within the rules. A French second home does not get the 30% main-home abatement available to residents on their principal residence.
Local taxes in one minute
Taxe foncière is due by the owner on 1 January, even if the home is empty or let. The bill multiplies cadastral values by rates voted by the commune and other local bodies. National cadastral bases were revalued by about +0.8% for 2026; your final change also depends on local rates.
Taxe d'habitation still applies to furnished homes that are not your main residence. In many zones tendues, communes can add a surcharge of 5% to 60% on the communal share. Separate vacant-property taxes can apply in designated areas after long vacancy.
Guides: French Local Property Taxes for Non-Residents and French Property Holding Costs for Non-Residents.
Separate the deed question from the tax-form question
Ask a bilingual notaire who legally owns the asset (you, an SCI, a Ltd, a trust). Then ask a tax adviser which of TVVI, IFI and local notices that structure triggers.
When the taxes stack
These regimes are independent. Common stacking patterns:
Personal owner, second home: local taxes every year + IFI if net French real estate exceeds €1.3M. No TVVI on you as an individual.
SCI with individual partners: SCI (or partners, depending on setup) faces local taxes on the property; partners may have IFI on their share of French real-estate value; a correctly filed SCI return (often 2072) has historically often avoided a separate 2746-SD for the SCI itself.
Foreign company or trust on title: local taxes still arise on the property; the entity needs a TVVI analysis (2746-SD / exemption); ultimate individual owners may still have IFI on look-through French real-estate interests.
Non-compliant entity: worst case is local taxes + IFI at owner level + 3% gross TVVI if exemption filings fail. On a €1,000,000 company-owned flat, TVVI alone is €30,000 a year.
Scenarios for non-residents
Situation | Local taxes | IFI | TVVI |
UK resident owns a €450,000 Provence house personally | Yes (foncière + usually TH if furnished second home) | Unlikely alone (under €1.3M net) unless other French RE pushes you over | No (individual) |
Same owner, French RE portfolio net €1.6M | Yes on each property | Yes (progressive scale; no 30% second-home abatement) | No (individual) |
French SCI owned only by individuals, files 2072 | Yes | Partners may be in IFI on their French RE interests | SCI often dispensed from separate 2746 if 2072 carries the required info (confirm for 2027) |
UK Ltd owns the flat directly; old commitment letter only | Yes | Shareholders may still have IFI exposure on French RE value | High risk from 2027 without annual 2746-SD + SIREN/e-filing + possible representative |
US LLC owns 100% of a French SCI | Yes (at property level) | Possible for ultimate individuals | Analyse both layers: SCI filing vs LLC's own 2746-SD need |
Structure guides: UK Ltd / US LLC, SCI With a Foreign Corporate Partner, Trusts.
Annual calendar at a glance
When | What typically happens |
1 January | Snapshot date for TVVI, IFI and ownership for taxe foncière. |
Spring (often May) | TVVI: 2746-SD due by 15 May. IFI: declare with income-tax calendar / 2042-IFI (non-resident deadlines as published each year). |
Summer / autumn | Taxe foncière notices and payment windows (check your avis). |
Late year | Second-home taxe d'habitation often billed toward year-end. |
Diaries differ slightly by département and by whether you file online. Always follow the dates on your notice and on impots.gouv.fr for the current campaign.
What to check this year
Write down the owner on the deed: individual, SCI, foreign company or trust.
List every French property and a working market value at 1 January.
For individuals: total net French real-estate wealth versus the €1.3M IFI threshold.
For entities: exemption basis (2072, 2746-SD, old commitment?) and SIREN / e-filing readiness for 2027.
Request the latest taxe foncière (and TH if relevant) notices before you model yield or budget.
Keep valuations consistent across TVVI, IFI and a future sale file.
Where the notaire fits in
Does: establish who owns what, annex copropriété documents, flag corporate layers at purchase, withhold capital gains on sale.
Does not: file your 2746-SD, prepare 2042-IFI, or pay your taxe foncière.
Use the notaire for the ownership map; use a French tax adviser for the returns. Matching: How to Find an English-Speaking Notaire in France.
Frequently asked questions
Is TVVI the same as IFI?
No. TVVI targets legal entities at a flat 3% of gross value unless exempt. IFI targets individuals on net real-estate wealth above €1.3 million with progressive rates.
If I pay taxe foncière, do I still need IFI or TVVI?
Yes, when those regimes apply. Local tax is a separate commune-level charge. It does not replace wealth tax or the entity 3% tax.
I own through an SCI. Which tax am I dealing with?
Usually local taxes on the property, possible IFI at partner level, and a TVVI analysis for the SCI and any foreign company above it. A clean individual-partner SCI that files 2072 is often outside separate 2746-SD, but confirm your facts for 2027.
Can debts reduce all three?
No. Debts can reduce IFI within the rules. TVVI uses gross market value with no debt deduction. Local taxes are billed on cadastral bases, not on your loan balance.
What is the single most expensive mistake?
For company or trust holdings: missing TVVI disclosure from 2027 and becoming liable for 3% of gross value every year. For high-value personal owners: ignoring IFI once French net real estate crosses €1.3 million.
Do non-residents pay higher local tax rates?
Not as a special non-resident tariff. Differences come from use (second home vs main home), commune surcharges and vacancy rules.
Sources
Map ownership first, then the tax forms
Once you know whether title sits with you, an SCI or a foreign entity, the right mix of local tax, IFI and TVVI becomes clearer.
Find a bilingual Notaire within 48 hours · Free matching · In person or video · e.g. Paris or Lyon