Expatriates and IFI (French Wealth Tax): assets located outside France are excluded for 5 years

Yes, for a limited period. A person who moves to France without having been a tax resident there for the previous five calendar years is only liable for the French wealth tax (IFI) on their real estate assets and rights located in France. Their real estate located outside France is excluded from the tax base until December 31st of the fifth year following the year in which they established their tax residence. After that, standard tax rules apply: all real estate assets, both in France and abroad, are taxed.

This rule is independent of the expatriate tax regime under Article 155 B. The tax administration's page on the expatriate tax regime specifies that no employment conditions are required. The BOFiP (Official Bulletin of Public Finances) adds that the measure applies regardless of the reason for relocation.

This page follows the official tax guidelines (BOFiP) (BOI-PAT-IFI-10-20-20, in effect since June 8, 2018) and the tax administration's updated pages from April 8, 2026. It presents Article 964 of the French General Tax Code (CGI) as explained in the BOFiP. It does not address asset valuation, debts, the tax cap, or the relevant sections of the tax return. The tax administration's updated pages from April 8, 2026, describe this rule; any changes introduced by a finance law are verified at source.

The conditions

Tax residence for the purposes of the IFI (French wealth tax) is defined in the same way as for income tax. It is assessed on January 1st of each tax year.

What is retained, and what is not

During the preferential tax period, the taxpayer is taxed on their real estate assets and rights located in France. The French tax authorities (BOFiP) define this as assets located in metropolitan France and in the overseas departments and regions. Shares or stock in companies are included for the portion of their value representing French assets.

Real estate located outside of France is excluded.

At the end of the period, a resident is taxed on their real estate assets and rights located in France or outside France, beyond the threshold of €1,300,000 of net value.

How long ?

The period runs until December 31 of the fifth year following the year in which the tax residence was established. The tax authorities write it as "until 31/12/N+5", where N is the year of establishment.

The BOFiP (Official Bulletin of Public Finances) provides an example. A taxpayer moves to France on October 1, 2017. They become subject to the IFI (French Wealth Tax) on January 1, 2018. For the years 2018 to 2022, they are only taxed on their real estate located in France. From the 2023 IFI onwards, they are taxed on all their real estate assets, both in France and abroad, if they remain a tax resident.

By analogy with this example, an installation during the year 2026, therefore a liability from January 1, 2027, corresponds to a period of favor for the IFI 2027 to 2031, then to the common law from the IFI 2032. This deduction is an example calculation, not a position of the administration on your case.

The BOFiP also deals with two specific cases:

• The benefits of the scheme are not lost in the event of a round trip between France and abroad; ;
• If you return to France before January 1, 2018, the duration of the scheme will take into account the years already elapsed. Details can be found in the BOFiP (Official Bulletin of Public Finances).

A link with the expatriate tax regime?

The French tax administration's "Expatriate Tax Regime" page, updated on April 8, 2026, mentions the French Wealth Tax (IFI) among its advantages: taxation is limited to real estate located in France until December 31 of the fifth year following the establishment of tax residence in France, and no employment requirement applies. The "Persons Subject to the IFI" page describes the same rule.

The IFI (French wealth tax) rules do not require the provisions of Article 155 B: its conditions are those of tax residence and five years. The duration of income tax exemption (8 years) is not the same as that of exclusion from the IFI (5 years): do not confuse them.

The spouse and children

The BOFiP (Official Bulletin of Public Finances) devotes a paragraph (§ 100) to foreign real estate belonging to the spouse or children of a taxpayer domiciled in France. This page does not detail this case: it must be verified in the BOFiP before any decision is made.

Wealth tax on expatriates: a numerical example (fictitious profile)

Situation. Paul, a fictional character, moves to France in 2026 after several years abroad, having had no tax residence in France for the previous five calendar years. He owns a rented apartment in Lyon, free of debt, worth €1,200,000, and a property located outside France, also free of debt, worth €1,500,000.

Hypotheses. No primary residence, therefore no 30% tax allowance. No other debt or reduction. 2026 tax brackets and thresholds are assumed unchanged for this example.

Issue. What is the effect of excluding assets located outside France on one's IFI (French wealth tax)?

Strategy. Compare the tax base for the preferential period (France only) with that of the common law (France and foreign countries).

Result. During the preferential period, the tax base is €1,200,000; below the threshold of €1,300,000, the IFI is €0. Under standard rules, the tax base is €2,700,000. The IFI is €12,690.

Tax rates used (impots.gouv.fr, "IFI Calculation" page, modified on 08/04/2026): 0 % up to €800,000; 0.5 % from €800,000 to €1,300,000; 0.7 % from €1,300,000 to €2,570,000; 1 % from €2,570,000 to €5,000,000. The discount, reserved for assets between €1,300,000 and €1,400,000, does not apply here.

The profile is fictitious and the amounts are hypothetical. The calculation ignores caps, gifts, and exemptions. It does not predict your situation.

Wealth tax for expatriates: what changes depending on your situation

• The date of installation and the five preceding calendar years: a tax residence in France in one of these years disregards the rule.
• The tax treaty that may be applicable to determine domicile.
• The location of each property: in metropolitan France or in an overseas department or region, or outside of France.
• Shares in companies holding real estate: only the French portion is taken into account.
• The situation of the spouse and children.
• A round trip between France and abroad during the period.

The rule depends on your situation. No results are guaranteed.