IFI – France’s New Wealth Tax
Previously, if your global assets had a total value of 1,300,000€ or more, then you were subject to the wealth tax (ISF). This would include assets such as property, cars, savings and even jewellery.
As of 2018, the wealth tax has been updated and is now purely based upon the market value of real-estate, whilst the threshold of 1,300,000€ remains the same. This is now known as the IFI tax (L’impôt sur la fortune immobilière).
Those considered to be French residents will pay this tax on any worldwide property they own with a market value of over 1,300,000€, whereas non-residents will only be taxed on their French property.
The rate of tax varies depending on the market value of the property. For example: 1,300,001€ – 2,750,000€ is taxed at 0.7%; 2,750,001€ – 5,000,000€ is taxed at 1%, and so on.
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