France's Wealth Tax (IFI) - welcome to your guide

France is one of only a few countries internationally to impose a wealth tax. Germany, Sweden and the Netherlands have abolished their versions but Spain, Norway, Liechtenstein and Switzerland still have comparable taxes. 

France's wealth tax in its current form only covers property – that is buildings and land and certain related rights or investments – and so is called Impôt sur la fortune immobilière (literally 'Tax on property wealth').

It applies to households whose net property assets in France and, for tax residents of France, abroad exceed €1.3million. 

If you are not a tax resident of France, IFI mainly applies to property physically located in France that you own. IFI does not cover money in the bank, cars, yachts or many kinds of investment unless they are related to property. 

In 2025, there were calls from some politicians to extend the scope of the tax to include more forms of so-called 'unproductive' wealth, however, this was not maintained. 

President Emmanuel Macron introduced the current IFI version in 2018 to replace Impôt de solidarité sur la fortune, which covered a broader range of wealth. 

IFI brings in less than half of the tax revenue of its ISF predecessor. 

In restricting the tax to property, Mr Macron said his aim was to avoid taxing those whose wealth was invested in companies and thus boosting the economy. 

However, while he reduced the types of assets applicable he also removed some of the deductions used to lower taxable wealth that are not linked to property. 

People moving from English-speaking countries such as the UK and US who are unfamiliar with such a tax must be aware of this annual declaration and payment obligation. It is up to individuals to establish if they are eligible to pay this tax and to know the valuation of their property/ies. 

The tax due is not necessarily high as there are various ways to limit what is included and the final bill. 

The first €800,000 of net property wealth is also tax free and there is an allowance for your main home. The key point is that if you qualify for the tax, you must make a declaration. Failure to do so can incur penalties.

Use the contents list to access topics of interest. Alternatively, use the ‘next’ and ‘previous’ options at the bottom of each page to read the guide in sequence. If you have questions about IFI, please email questions@connexionfrance.com and we will do our best to address them in future updates. We welcome your feedback.

The Connexion team