How IFI Tax differs from the former ISF Tax

As of 2018, the French Wealth Tax (ISF) has been replaced by the Property Wealth Tax (IFI), which includes some slight modifications.

IFI concerns non-resident tax households whose real estate assets are not used for professional activities. Taxable assets include buildings as well as other properties such as farmland, property under construction etc. Stocks and shares held in property companies that own property both in France and abroad are also subject to this tax.

The rates are equivalent to the ISF, in that you are subject to IFI if the net value of assets exceeds 1,300,000 € on the 1st of January of the tax year in question.

Although IFI does not allow for as many reductions and allowances as ISF, if you donate to a charity organisation, you would benefit from a reduction of the IFI which would be equal to 75% of the donations made (within the limit of 50 000 €).

If subject to IFI, it is compulsory to file the supplementary return n°2042 online by September.

 

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