Tax considerations of owning property in France

It is always important to understand the tax implications when buying property, particularly where a foreign tax regime is involved and/or you have liabilities in more than one country.

You should be particularly careful with a second (effectively investment) property that will not be regarded as your principal private residence, as you generally lose the main home reliefs and may have other tax considerations.

Here we look at three key property taxes you need to be aware of in France (there are also local taxes such as the taxe d’habitation and foncière), whether you are resident or non-resident.

Wealth tax

This formed part of President Macron’s tax reforms for 2018. Wealth tax as we knew it – Impôt sur la Fortune (ISF) which applied to your household’s total wealth – was repealed and replaced by a new real estate wealth tax – Impôt sur la Fortune Immobilière (IFI). 

This was good news for savers and investors, since bank accounts and capital investments are no longer liable, but property investors may feel hard done by.

Individuals resident in France are taxed on the value of their worldwide real estate ...

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