The €1.3 Million Threshold
If the net value of your real estate assets exceeds **€1.3 million** as of January 1, 2026, you are liable for the *Impôt sur la Fortune Immobilière* (IFI). This applies to French residents on their worldwide property and non-residents on their French property. Notably, your main residence benefits from a **30% valuation allowance**. The declaration is typically filed alongside your income tax return in late May or early June. Official updates can be found on impots.gouv.fr.
Progressive Rates
Once you cross the €1.3M threshold, the tax is calculated starting from €800,000 at a rate of 0.5%, scaling up to 1.5% for assets over €10M.
Strategic Deductions
The IFI is a net tax, meaning debts related to the acquisition or improvement of the property are deductible. The calculation for the tax base is: $$Base = \\sum(Property\\ Value \\times Allowance) - Deductible\\ Debt$$. LSI keywords include 'Abattement,' 'Résidence Principale,' 'IFI Scale,' and 'Wealth Tax Exemptions.' For new French residents, a '5-year exemption' may apply to non-French real estate. If your total tax (Income + IFI) exceeds 75% of your income, a capping mechanism (plafonnement) may reduce your IFI bill. Ensure you have professional valuations, especially in volatile markets like Paris or the Riviera, to avoid 'manque à gagner' penalties from the French tax authorities.