Wealth tax (IFI) for non-residents: taxable assets, €1,300,000 threshold, tax brackets and discounts

A non-resident is liable for the French wealth tax (IFI) on their real estate assets and rights located in France, held directly or indirectly on January 1st. The tax is only due if the net taxable real estate assets exceed €1,300,000. Above this threshold, the calculation begins at €800,000, and a discount applies between €1,300,000 and €1,400,000. International tax treaties may modify this outcome.

Living abroad does not exempt you from the French wealth tax (IFI) if you retain real estate in France. This page outlines the four key factors that determine your situation: what is included in the tax base, the threshold, the tax brackets, and the tax reduction.

What is taxable: real estate located in France

The tax authorities describe the scope of the IFI for a non-resident as follows: their real estate assets and rights located in France, held directly or indirectly.

Three points are important.

• The date. The situation is assessed as of January 1st.
• The "directly or indirectly" aspect. You do not need to own the property in your own name. Shares in real estate companies that you own are generally included in the tax base, subject to the exclusions described below.
• The retained fraction. For these shares, the IFI (French wealth tax) applies to the portion of real estate located in France. Therefore, the company is not counted for its total value but for the portion of its value that corresponds to French real estate.

Shares in companies are not always counted. The tax authorities describe two exclusions:

• Holding less than 10 % of the company's capital, Under certain conditions, this applies when these real estate assets are used for the business activities of the company that owns them. A small stake in a real estate company is therefore not automatically excluded from the tax base.
• Assets allocated to the main professional activity. Shares in companies representing assets used for business purposes are exempt from tax when their owner (or a member of their tax household) carries out their primary professional activity within the company. The company may be a partnership subject to income tax.

The exact conditions of these exclusions are verified on a case-by-case basis.

All of this is subject to international conventions. Depending on your country of residence, a convention may stipulate different rules. This point must be verified on a country-by-country basis.

The threshold: €1,300,000 as of January 1st

The French wealth tax (IFI) is due if your net taxable real estate assets exceed €1.3 million on January 1st. For the 2026 IFI, the reference date is January 1st, 2026. This threshold also applies to non-residents.

Two practical consequences:

• below the threshold, you pay nothing to the IFI; ;
• Above that threshold, the tax is not limited to the portion exceeding €1.3 million. The calculation goes back up to €800,000.

The IFI tax scale

The scale is applied in brackets of net taxable assets.

The administration explains that once the threshold is exceeded, the calculation starts at €800,000. Therefore, assets of €1,310,000 pay the 0.50 % bracket on €500,000, plus the 0.70 % bracket on €10,000.

The discount is between €1,300,000 and €1,400,000

For net taxable assets between €1,300,000 and €1,400,000, a discount applies. It is calculated as follows:

€17,500 less 1.25 % of net taxable assets.

It decreases as the estate's value increases. At €1,400,000, the formula gives €17,500 − €17,500 = 0: the discount disappears. Above this threshold, the IFI (French wealth tax) is calculated directly from the tax brackets.

Three reading mistakes to avoid

1. Believing that a foreign address is sufficient. The criterion is not your place of residence, but the location of your real estate assets and rights: those located in France are included in the calculation.
2. Only calculate the tax on the portion that exceeds 1.3 million euros. Once the threshold is crossed, the calculation starts at €800,000.
3. To forget what one owns through a company. Indirect ownership can count, for the real estate portion located in France, subject to exclusions (a participation of less than 10% is excluded only under conditions relating to the allocation of assets to the company's activity; assets allocated to the main professional activity).

Numerical example (fictitious profile)

Situation. Claire, 52, lives outside France. She owns an apartment in France with a net taxable value of €900,000 as of January 1st. She also holds 40% of the capital of a real estate company, in which she does not carry out any professional activity: the real estate portion located in France represents €450,000. Total: €1,350,000.

Issue. Claire thought that residing abroad exempted her from the IFI (French wealth tax). She hadn't added the apartment and the company shares together, and didn't know that her total exceeded the €1.3 million threshold by €50,000.

Strategy. Before January 1st, inventory all real estate assets and rights located in France, both direct and indirect, and determine their value as of that date. Then, check whether any of the exclusions applicable to company shares apply to your situation, and whether a tax treaty applies to your country of residence.

Result. The tax brackets provide €2,500 on the portion of the estate between €800,000 and €1,300,000 (€500,000 × 0.50 %), plus €350 on the next portion (€50,000 × 0.70 %), totaling €2,850. The discount is €625 (€17,500 − 1.25 % × €1,350,000). The IFI (French wealth tax) is calculated as follows: €2,225.

The same reasoning, applied to other amounts:

These amounts illustrate the mechanism. They are not valid for a real case.

What changes depending on your situation

• Your country of residence. An international convention may stipulate other residency criteria. The result must be verified for your country.
• The method of possession. Whether held in one's own name or through a real estate company, direct or indirect ownership falls within the scope. For company shares, only the real estate portion located in France is considered, and exclusions (participation of less than 10% subject to conditions regarding the allocation of assets to the company's activity; assets allocated to the principal professional activity) must be examined.
• Your position relative to the threshold. At around 1.3 million euros, a few tens of thousands of euros in value shift the result, with or without discount.
• The value as of January 1st. This date determines your situation for the year.