Today, focus on the IFI

The april 20, 2023

To replace the ISF (Impôt Sur la Fortune), which was repealed on 30 December 2017, the government has introduced a tax system that only takes into account real estate assets, the Impôt sur la Fortune Immobilière, or IFI. What are the taxable assets? How is it taxed? Here are some answers to questions you may have.

Who is affected?

All taxpayers with net property assets in the tax household in excess of €1,300,000 are liable for this tax. But how are these assets assessed?

In practice, all property assets held on 1 January of the tax year must be included. That is to say, you have to take into account :

- All residential property for personal use or rental property, and with their outbuildings,

- Non-built property such as building land or agricultural land,

- Property that is under construction on 1 January of the year,

- Shares in real estate companies, including life insurance policies,

- Real estate rights held, including Usufruct.

Buildings classified as "historic monuments" are not exempt from this rule. However, there are exceptions or exemptions. The most important of these is the 30% allowance on the value of the main residence, provided that it is held directly and not via a company (including a SCI).

The net value of the assets is assessed by deducting the liabilities linked to the taxable assets from these real estate assets.

What is the tax treatment?

The scale is divided into six brackets. Please note that although the tax threshold is €1,300,000, assets are taxed from €800,000.

Fraction of the net taxable value of the assets

Applicable rate

Up to €800,000


Between €800,001 and €1,300,000


Between €1,300,001 and €2,570,000


Between €2,570,001 and €5,000,000


Between €5,000,001 and €10,000,000


More than €10,000,000


Sources :

It is sometimes difficult whether the tax threshold has been reached or not. With the exceptions and exemptions that govern taxation, it is best to seek guidance. If you or someone close to you would like to be advised, do not hesitate to contact the Wealth Management team at Wealth A7; contact us!

In a changing world, Wealth A7 is there to bring your wishes to life.


Article by : STEPHANE SAES

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