Choisir ce modèle Voir le catalogue
You are here :
  1. Home
  2. Wealth Tax (IFI) and Non-Residents: A Often Overlooked Obligation, a Very Real Risk
Wealth Tax (IFI) and Non-Residents: A Often Overlooked Obligation, a Very Real Risk

Wealth Tax (IFI) and Non-Residents: A Often Overlooked Obligation, a Very Real Risk

Published on : 17/11/2025 17 November Nov 11 2025
Focus

Many non-residents own real estate in France for personal use or rental purposes without knowing that they may be subject to the Impôt sur la Fortune Immobilière (IFI – French Real Estate Wealth Tax). Yet the rule is clear: any person who owns real estate located in France with a net value exceeding €1.3 million is liable for the IFI, even if they are not tax resident in France.

This lack of awareness often leads to a failure to file the required tax return. The risk becomes particularly significant when the property is sold: at that point, the tax authorities have the information they need to easily identify the failure to declare and initiate a tax reassessment, including late-payment interest and potential penalties.

Determining the IFI Tax Base: Key Rules Non-Residents Should Know

The IFI tax base is not limited to the gross value of the real estate assets. A precise analysis is required, as certain items must be included, excluded, or adjusted.

1. Taxable Real Estate Assets and Rights Located in France

For non-residents, the following are included in the tax base, among others:
  • Built and unbuilt real estate located in France (residences, rental properties, land, etc.)
  • Shares in companies or entities holding French real estate, proportionate to the value of the taxable real estate assets
  • Real estate rights

Real estate assets used for the taxpayer’s professional activity may qualify for an exemption under certain conditions.

2. Market Value to Be Declared

Assets must be valued at their market value as of 1 January, meaning the price for which the asset could be sold under normal market conditions.
For shareholdings, an analysis of the company’s structure, assets, and liabilities is required to determine the taxable share.

3. Deduction of Liabilities Related to Taxable Assets

IFI is calculated on the net value, after deducting liabilities existing on 1 January and linked to the taxable assets.
The following are notably deductible:
  • Loans taken out for the acquisition, repair, or improvement of the assets
  • Certain tax liabilities related to real estate
  • Shareholder current accounts corresponding to actual financing
However, many restrictions apply, and not all liabilities are deductible.

Our firm can assist you at several levels:
  • Analysis of your assets and verification of your exposure to IFI
  • Secure compliance: filing tax returns, voluntary disclosures, risk-mitigation strategies
  • Assistance in the event of an audit or reassessment: communication with the authorities, challenges, administrative or judicial appeals
If you own real estate in France or are considering selling property, it is essential to anticipate your tax obligations in order to protect your interests and secure your situation.
Share on
Publish this article Share on LinkedIn Share on Facebook Send by E-mail

History

<< < 1 > >>
Septeo Digital & Services © 2025
Browser not supported

The Internet Explorer browser you are currently using does not display this website correctly.

We recommend that you download and use a more recent and secure browser such as Google Chrome , Microsoft Edge , Mozilla Firefox , or Safari (for Mac) for example.
OK