Money, tax and inheritance · French law
French IFI: prepare property values and debts
French IFI considers the household’s net taxable real-estate wealth on 1 January, with a threshold strictly above €1.3 million. A property price alone is insufficient: ownership rights, residence, exclusions and debts require classification. This ledger totals only amounts already identified as taxable or admissible. It does not decide company holdings, usufruct origins, special loans or international residence cases.
Informational guide. An independent qualified legal review has not been completed.
What you leave withA net inventory that keeps unclassified amounts visible.
Start with the practical sectionJulie by AlphaDeep
Does net value exactly equal to €1.3 million exceed the threshold?
No. Exactly €1.3 million is not strictly above €1.3 million. Correctly establish taxable net value and the relevant household first.
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Which household and valuation date apply?
IFI uses taxable property wealth on January 1 and the relevant household. The statutory threshold is net taxable value strictly above €1.3 million.
Tax residence, household and rights held affect scope. The worksheet assumes prior classification; it does not automatically identify every household asset.
References : 964
Which assets and ownership rights belong in the inventory?
Separate assets and rights, ownership share, value and retained tax treatment. Indirect holdings and international cases need appropriate analysis.
Preserve each value’s evidence and classification questions. Do not replace missing estimates with zero merely to reduce a total below a threshold.
| Line | Necessary information | Confirmation |
|---|---|---|
| Asset or right | Nature, holder and share | Taxable perimeter |
| January 1 value | Estimate and records | Consistent date and method |
| Related debt | Origin, schedule and payment | Eligibility and deductible fraction |
When can the main-residence allowance apply?
The thirty-percent main-residence allowance concerns market value of an owner-occupied principal home within statutory scope. It does not automatically apply to company shares holding a dwelling.
Establish direct ownership, occupation and household before recording an adjusted value. The calculator does not apply thirty percent to every line labelled main home.
References : 973
Which debts must be classified before subtraction?
Deductible debts must, among other conditions, exist on January 1, be actually borne, relate to taxable assets and respect the corresponding taxable fraction.
A statement’s outstanding principal is therefore not always the deductible amount. Keep contract, purpose and payment evidence beside the retained figure.
References : 974
Why are some loans not deducted at their outstanding balance?
Bullet and no-term loans have specific deductible-amount rules. Outstanding principal does not replace the text’s amortised-deduction mechanisms.
Prepare initial amount, funding date, contractual duration and elapsed years. The worksheet selects no special formula from a debt label alone.
References : 974
How does the larger-estate debt limitation work?
Where taxable gross property exceeds €5 million and relevant debts exceed sixty percent of that value, the text ordinarily limits deduction of the excess to half.
Examine conditions and the opportunity to establish absence of a mainly tax-driven purpose. This mechanism explains the ordinary worksheet’s exclusion of these estates.
References : 974
How should confirmed amounts be totalled?
The worksheet subtracts already-classified admissible debt from confirmed taxable value. It calculates neither the home allowance nor final IFI.
Special loans, property above €5 million and uncertain classification are outside the simple case. Debt above stated assets calls for review, not automatic ordinary-net validation.
References : 974
How should €1,400,000 of property and €250,000 of stated debt be read?
The already-classified fictional €1,400,000 taxable value minus €250,000 admissible debt gives €1,150,000. That balance does not establish a complete inventory.
Changed assets, debts or exclusions need recalculation after classification. Arithmetic does not determine the household’s liability.
Fictional already-classified ordinary case:€1,400,000 taxable value less €250,000 admissible debt gives €1,150,000. The ledger does not prove completeness or debt admissibility; special cases remain outside the calculation.
Capital gains tax on French property 2026: rates, allowances
Why separate special loans and larger estates?
Family, connected-party and non-amortising debts cannot all be treated as ordinary bank loans. Larger-estate debt limits add another check.
Separate these lines and have treatment examined before including them. A debt’s existence and deductible amount are different information.
References : 974
Which evidence needs review before the return?
A readable return file explains retained values and deductions with dates and records. Julie can organise questions without certifying the estate’s tax scope.
- Ownership, shares and household position.
- January 1 value evidence.
- Loan agreements, schedules and fund use.
- Family debts, indirect rights and special-case evidence.
What else should you check?
Does net value exactly equal to €1.3 million exceed the threshold?
No. Exactly €1.3 million is not strictly above €1.3 million. Correctly establish taxable net value and the relevant household first.
References : 964
Does the thirty-percent allowance automatically apply to company shares?
No. A main-home label does not automatically apply the allowance to company shares. Examine ownership and statutory conditions.
References : 973
Is every outstanding loan balance fully deductible?
No. Eligibility, asset connection and special-loan rules can change deduction. A bank statement alone does not fix the tax amount.
References : 974
Is family debt treated like an ordinary bank loan?
No. The text specially regulates certain family or connected debts. Establish their treatment and evidence rather than defaulting to ordinary-loan treatment.
References : 974
Can the larger-estate debt limits above €5 million be ignored?
No. The debt limitation can apply above €5 million with the statutory ratio. Examine conditions and exceptions before tax calculation.
References : 974
Which sources support this page?
Official texts remain in French. The explanations above describe French law. A source check records a reading date; it is not qualified legal review.
- 964Source checked : · Version from 2018-01-01
- 973Source checked : · Version from 2023-12-31
- 974Source checked : · Version from 2018-12-31
- Service Public · personnes et biens concernés par l’IFISource checked :