The French real estate wealth tax, the IFI, applies to net taxable property wealth above €1,300,000 on 1 January. A buyer domiciled outside France is liable only on property located in France, held directly or through a company, subject to tax treaties. Above the threshold, a progressive scale from 0.50% to 1.50% applies from €800,000.
For a prestige villa on the French Riviera, it is a yearly charge to build into the cost of ownership from the offer onwards, alongside property tax and upkeep, and a figure that informs the choice of ownership structure and financing.
Who is liable, resident or non-resident
A taxpayer domiciled in France declares all of their property, in France and abroad. A taxpayer domiciled outside France declares only property and property rights located in France, together with the portion of shares in companies, French or foreign, that represents French property. A person who settles in France after five years of domicile abroad remains taxed on French assets only until 31 December of the fifth year after arriving.
What makes up taxable wealth
- Houses, villas and apartments, with their outbuildings, whether occupied, lent or let
- Buildings under construction and land
- Shares in French property companies (SCI) and foreign companies, in proportion to the property they hold
- The taxpayer’s main home, after a 30% reduction in its value, a reduction that does not apply to a holiday villa
Each property is assessed at its market value on 1 January of the tax year, the price that normal supply and demand would achieve. Comparable sales, those our observatory publishes town by town, support a defensible valuation.
Deductible debts
Debts existing on 1 January, actually borne by the taxpayer and relating to taxable property, are deductible, notably the loan taken out for the purchase, improvement, construction or extension works, upkeep costs and property tax. Where taxable wealth exceeds five million euros and debts exceed 60% of its value, the excess is taken into account for half only.
The scale and the relief
- Up to €800,000, exempt
- From €800,000 to €1,300,000, 0.50%
- From €1,300,000 to €2,570,000, 0.70%
- From €2,570,000 to €5,000,000, 1.00%
- From €5,000,000 to €10,000,000, 1.25%
- Above €10,000,000, 1.50%
Between €1,300,000 and €1,400,000, a relief equal to €17,500 minus 1.25% of net taxable wealth softens the entry into the tax.
Two worked examples
A villa held directly, with a net value of €3,000,000 and no debt, bears a yearly IFI of €15,690. Net property wealth of €6,000,000 bears €48,190. These amounts are before reductions and the cap.
Cap, reductions and filing
The cap, which limits IFI plus income taxes to 75% of the previous year’s income, is reserved for taxpayers domiciled in France, except for a non-resident who earns most of their income in France. Gifts to certain public-interest bodies give a tax reduction of 75% of their amount, up to €50,000.
The IFI is declared in spring, on the 2042-IFI schedule attached to the income tax return. A non-resident with no French-source income files it with the 2042-IFI-COV identification form. The tax notice arrives in August, for payment in mid-September.
Ownership structure, direct or through a company, and the share of borrowing are decided with your notaire and tax advisor, before signing. We support you in buying on the French Riviera with these figures in hand from the negotiation onwards.
This guide describes the general French framework for information, based on the practical guide of the French tax administration, impots.gouv.fr and the Bulletin Officiel des Finances Publiques, reviewed on 27 October 2026. Rules change and depend on your situation, and only your advisor produces the final calculation.