What are arrival timelines for declaring property wealth tax in France?
There is a ‘grace’ period available for wealth held overseas
The exemption includes homes owned in the UK and US
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Reader Question: When exactly does the five years’ grace period end for declaring for impôt sur la fortune (ISF) property wealth tax? We arrived in June 2020.
You are referring to the exemption period for wealth held overseas.
The exemption covers the period up to December 31 of the year five years after the one when you moved to France.
Read more: What are the rules on gifting a property in France?
So, in this case it expires at the end of 2025, meaning that your overseas wealth will fall to be assessed for IFI next year, based on your worldwide wealth on January 1, 2026.
The exemption applies to anyone who moves to France (ie. establishes their fiscal residency here) and who was not a French fiscal resident in the five calendar years before the year in which they moved (ie. in 2015 to 2019).
As a reminder, this is only a ‘grace’ period for overseas wealth – for example, homes you may own in the UK or US.
If you have French property-related wealth over €1,300,000, minus allowable deductions including 30% of the value of your main home, then you need to start declaring and paying IFI based on wealth owned on January 1 of the year after the one when you become a fiscal resident.
