Real estate wealth tax (IFI): persons and property concerned

Verified 06 March 2026 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)

Do you have a substantial real estate portfolio? You are subject to real estate wealth tax (IFI) if your net worth exceeds €1 300 000. This includes all real property and rights held directly and indirectly in 1er January. Some goods are partially or fully exempt. Some debts can be deducted from the value of your assets before taxation. We present you the applicable rules.

You are subject to the IFI when the taxable net worth of your non-professional real estate assets is greater than €1 300 000 to 1er January 2026.

You must declare, among other things:

  • Built real estate (for personal use or for rent): houses, apartments and their outbuildings (garage, parking, cellar...)
  • Classified buildings historical monument
  • Real estate under construction at 1er January 2026
  • Unbuilt real estate (building land, agricultural land...)
  • Real estate or fractions of real estate represented by shares of real estate businesses
  • Real estate rights (usufruct, right of use or dwelling...)
  • Units or shares held in businesses or organizations with property or real estate rights, up to the value of real estate assets.

Fiscal Home

The IFI report takes into account the real estate held by all the persons making up the tax home.

The IFI tax home consists of one of the following 2 ways:

  • A person living alone, whether single, widowed, divorced or separated
  • Two people living as a couple.

In all cases, the property of minor children whose property you have legal administration is taken into account.

Please note

Divorced or separated parents exercising joint parental authority may each declare half the value of the property of their minor children.

Origin of heritage

Your taxation depends on your tax domicile :

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Your tax domicile is in France

Taxation concerns all immovable property or rights in immovable propertyshares in real estate businesses held in France and abroad.

FYI  

If you have just transferred your tax domicile to France after being domiciled abroad during the 5 calendar years In previous cases, you are only taxed on property and real estate rights owned in France. This taxation only on property located in France lasts for 5 years.

Your tax domicile is abroad

The following goods are taxable:

  • Property and real estate rights owned in France held by your household
  • Units or shares that you or your household own in real estate businesses holding real estate in France
  • Units or shares that you or your household own in real estate businesses holding real estate in France and abroad, equal to the property and rights owned in France

Some real estate investments are reportable under the IFI, including:

  • Units or shares of businesses or organizations holding real estate in France. You must report the value of real property held by the business or organization. However, real estate held indirectly is not taken into account if you own less than 10% the capital of the business that owns it, or under certain conditions, where such immovable property is allocated to the activity of the business that owns it or of a connected business.
  • Property and real estate rights transferred in trust or placed in a trust for their market value to 1er January 2026
  • Fraction of cash value at 1er January 2026 representative of the taxable real estate assets included in the units of account of redeemable life insurance contracts.

During the savings phase, PERs opened in the form of securities accounts are taxable at the IFI for the fraction of their value corresponding to taxable real estate assets.

FYI  

Real estate allocated to the operational activity of a business is excluded from the plate IFI.

There are specific reporting rules to the IFI, where the right of ownership of a property is dismembered between several people.

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Usufruit

THEusufruit is the right to enjoy property that is not fully owned.

The bare-property is the right to dispose of property that another person has the right to use.

Your situation in relation to the IFI varies according to whether you are a usufructuary or bare owner and according to the origin of the ownership division.

Usufructuary

As a general rule, the usufructuary must declare the property to the IFI.

The usufructuary integrates the property into his patrimony for the fraction he holds and his freehold value. This is the case, for example, for the usufructuary who holds his rights as a result of a gift, a gift between spouses or a will.

However, in some cases, the act provides for a distributed taxation between the usufructuary and the naked owner(s), for example for the legal usufruct of the surviving spouse resulting from an inheritance.

The usufructuary must then declare the property only for the fraction he holds and its usufruct value.

The value of the usufruct is determined according to a tax scale that depends on the age of the usufructuary.

To know the distribution of the value between the usufructuary and the bare owner, you can use a simulator:

Knowing the tax values of a usufruct and bare ownership

Bare owner of a property

The bare-owner of a property shall not not declare it to the IFI, because the usufructuary has the obligation to declare the property for its freehold value.

However, in some cases, the law provides for taxation distributed between the usufructuary and the naked owner(s), for example for the legal usufruct of the surviving spouse resulting from an inheritance.

The bare owner must then declare the property only for the fraction he holds and its value in bare ownership.

The value of the bare ownership and the value of the usufruct are calculated according to a tax scale established according to the age of the usufructuary.

To know the distribution of the value between the usufructuary and the bare owner, you can use a simulator:

Knowing the tax values of a usufruct and bare ownership

Right of use or dwelling

The right of use and the right to dwelling are limited rights of enjoyment over property that is not fully owned.

The imposition on the IFI of a right of use or residence is treated as the imposition of a right in usufruit.

As a general rule, the beneficiary of a right of use or dwelling must declare in its heritage the freehold value of the property to which his right relates.

You must report each property subject to the IFI at its actual market value, i.e. the price at which it could have been sold on the market at 1er January of the taxation year.

You can estimate the value of a property by using the Patrim online service, accessible from your personal remote registrant space:

Taxes: access your Public Finance space

Your primary residence is subject to a abatement from 30% on its value at 1er January 2026.

Under certain conditions, partial or total exemptions are provided for in the following cases:

  • Real estate used for your professional activity
  • Timber and forests under contract for exploitation or professional use
  • Rural property leased for long-term or professional use (agricultural land, buildings and farm equipment)
  • Rented apartments furnished under the tax regime of the professional furnished rental company.

THEIFI: titleContent is calculated on the net worth of your taxable assets to 1er January 2026, i.e. after deduction of existing debts on that date, provided that they can be justified.

The debts relate to the assets that constitute the taxable assets at 1er January.

If the real estate is held by a business, the debts of the business can be deducted only for their co-payment which relates to real property.

It may be a debt for the following expenses:

  • Acquisition of taxable real property or rights (real estate loans)
  • Improvement, construction, reconstruction or expansion work
  • Acquisition of units or shares, up to the value of the taxable real estate and rights
  • Maintenance work due by the landlord, or paid by the landlord on behalf of the tenant but for which he was unable to obtain reimbursement on December 31 of the tenant's year of departure
  • Payment of taxes due for the properties concerned (e.g. property tax or inheritance tax).

On the other hand, the taxes imposed on the occupant are not deductible (for example, housing tax).

The share of your tax corresponding to the income from your real estate is also not deductible (property income for example).

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