Non-resident, am I liable to the French property wealth tax (IFI)?
A non-resident is liable to the property wealth tax only for property and property rights located in France, held directly or through company shares in proportion to the French property they hold, and only if their net value exceeds 1.3 million euros on 1 January, subject to the tax treaty with the country of residence. Only debts relating to those assets are deductible. The return is filed on form 2042-IFI, attached to the income tax return, or on form 2042-IFI-SK with form 2042-IFI-COV when there is no French-source income.
The 1.3 million threshold, assessed on French assets only
Impots.gouv.fr says it in one sentence, a non-resident is taxable only on property and property rights located in France. Shares or units of companies count in proportion to the value of the property or property rights located in France that they hold directly or indirectly. The tax is due when that net taxable estate exceeds 1.3 million euros, and the conditions are assessed on 1 January of each year.
The value retained is a net value, after deduction of debts, but only debts relating to taxable assets are deductible, the loan that financed the Paris flat is deductible, not the one on the Lisbon house. A tax treaty may use other residence criteria and share the taxation between the two states.
The scale and the return
The scale is the one for every taxpayer, progressive by bands from 0.5 % to 1.5 % above 800,000 €, once the 1.3 million threshold is crossed. A non-resident who files an income tax return in France attaches form 2042-IFI to form 2042, IFI box ticked. One with no French-source income files form 2042-IFI-SK with the cover form 2042-IFI-COV, box 9GN ticked. Filing is online as soon as the home has internet access.
Impots.gouv.fr adds that people domiciled outside the European Economic Area may be asked by the tax administration to appoint a representative in France. Finally, someone who moves back to France after five calendar years abroad is taxed only on French assets for five years.
| Fraction of net taxable value | Rate |
|---|---|
| Up to 800,000 € | 0 % |
| From 800,000 € to 1,300,000 € | 0.5 % |
| From 1,300,000 € to 2,570,000 € | 0.7 % |
| From 2,570,000 € to 5,000,000 € | 1 % |
| From 5,000,000 € to 10,000,000 € | 1.25 % |
| Above 10,000,000 € | 1.5 % |
IFI scale, applicable once the 1.3 million threshold is crossed
Frequently asked questions
I own a 900,000 € flat in Paris and a house abroad, am I liable?
No. Only the Paris flat counts, and 900,000 € stays below the 1.3 million threshold. A house located outside France is not in a non-resident's taxable base.
Do shares of an SCI holding a building in France count?
Yes, in proportion to the value of the French property the company holds, directly or indirectly.
When do I file?
In the spring of the following year, together with the income tax return, for the estate held on 1 January.
Read next
- impots.gouv.fr, international, « Je suis non-résident. J'ai des biens immobiliers en France et/ou à l'étranger. Suis-je assujetti à l'IFI ? » (modifié le 4 juillet 2022)
- BOFiP, BOI-PAT-IFI-10-20-30, personnes physiques domiciliées hors de France
- Légifrance, Code général des impôts, articles 964, 965 et 977
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