IFI — Real Estate Wealth Tax

Who is liable?

• Anyone whose net taxable real estate exceeds EUR 1.3 million as of 1 January
• French tax residents: worldwide real estate is counted
• Non-residents: only French-located real estate is counted
• Both directly owned property and shares in property-holding companies are included

What counts as taxable real estate?

• Residential and commercial property
• Building land
• Shares in property-holding companies (SCIs, REITs) proportional to real estate value
• Rural properties and forests (with partial exemptions)

Your primary residence benefits from a 30% reduction on its taxable value. Mortgage debt on taxable properties can be deducted.

Tax rates

The IFI uses a progressive scale. Taxation starts at EUR 800,000 (even though the filing threshold is EUR 1.3 million):

• EUR 0 — 800,000: 0%
• EUR 800,000 — 1,300,000: 0.50%
• EUR 1,300,000 — 2,570,000: 0.70%
• EUR 2,570,000 — 5,000,000: 1.00%
• EUR 5,000,000 — 10,000,000: 1.25%
• Above EUR 10,000,000: 1.50%

How to declare

The IFI is declared as part of your annual income tax return using:

• Form 2042-IFI — Annexed to the standard income tax return
• For complex holdings, additional annexes may be required
• Filing deadline follows the income tax schedule (May-June, varying by zone)

What Amanda does

Amanda lets you enter the estimated market value and outstanding mortgage for each French property (under Property Details, Compliance tab). It then aggregates the net taxable value across all your properties, applying the 30% primary residence abatement automatically.

If the total exceeds EUR 1.3 million, Amanda flags the IFI as a filing obligation on your dashboard.

Note: Amanda currently only tracks French property values. If you are a French tax resident with real estate in other countries, your actual IFI liability may differ. Consult a tax advisor for a precise calculation.