IFI for a non-resident: threshold, taxable assets and declaration in 2026
IFI for a non-resident: €1.3m threshold, only French property assets, deductible debts, tax treaties, declaration and 2026 dates.
The essentials
- A non-resident only owes the property wealth tax (IFI) if the net value of their property assets and rights located in France exceeds 1.3 million euros on 1 January.
- The scale runs from 0.5% to 1.5% from €800,000, with a discount between 1.3 and 1.4 million euros, and the cap at 75% of income is reserved for residents.
- IFI is declared on form no. 2042-IFI with the income tax return: in 2026, non-residents had until 21 May online and until 19 May on paper.
Is a non-resident subject to IFI?
Yes, as soon as their French property assets exceed the threshold. Article 964 of the CGI subjects to IFI persons who do not have their tax residence in France when the net value of their property assets and rights located in France, held directly or indirectly, exceeds 1.3 million euros. Residence is assessed under article 4 B of the CGI or, where a tax treaty exists, under its rules.
Assets are valued on 1 January of the tax year, at their actual market value. They are calculated at household level: you, your spouse, your Pacs partner or your long-term cohabiting partner, and your minor children whose assets you manage.
The scale and the discount in article 977 of the CGI have not changed since their creation on 1 January 2018: this is the version in force on 7 November 2026. The threshold of 1.3 million euros triggers the tax, but the scale applies from €800,000.
| Portion of the net taxable value | Rates |
|---|---|
| Up to €800,000 | 0 % |
| 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 % |
| From €5,000,000 to €10,000,000 | 1,25 % |
| Above €10,000,000 | 1,50 % |
| Discount between €1,300,000 and €1,400,000 | €17,500 − 1.25% of the net taxable value |
Which assets count towards your taxable wealth?
For a non-resident, only property assets and rights located in France, in mainland France or the overseas departments, count. Your properties abroad, your accounts and your financial investments unrelated to French property remain outside the tax base.
Indirect holdings are covered. Shares in companies, French or foreign, are taxed in proportion to the part of their value that represents buildings located in France. The exclusion rules apply to you too: a holding of less than 10% of the capital and voting rights in a trading company that owns a building in France is not taxed, except for exceptions provided by law.
The 30% allowance is reserved for the main residence. A property you keep in France during your expatriation is not your main residence for the purposes of this allowance: it is included at its full market value.
- Apartments, houses, land and car parks located in France, rented out or not.
- Property rights: usufruct, bare ownership under the conditions of the law, right of use.
- Shares in SCIs and in companies holding buildings in France, for their property portion.
- Property-linked units of account in life insurance or capitalisation contracts, assets placed in a trust or fiducie, buildings under finance lease.
- Buildings used for the own activity of an operating company: excluded from the valuation of the shares.
Which debts can you deduct?
Only debts that exist on 1 January, are borne by you and were taken on for a taxable asset are deductible (article 974 of the CGI). A non-resident therefore cannot deduct a debt that finances a property located abroad.
Several rules limit the deduction. An interest-only (in fine) loan is deducted on a declining basis: each year, the amount borrowed reduced by a fraction equal to the years elapsed divided by the total term of the loan. Loans granted by a member of the household, a parent or grandparent, a child or grandchild, a brother or sister, or by a company you control, are not deductible, unless in certain cases you prove that they are on normal terms. When taxable wealth exceeds 5 million euros and debts exceed 60% of its value, the excess is only deductible up to 50%.
| Dette au 1er janvier | Deductible? |
|---|---|
| Outstanding capital of a bank loan to buy the property, notary fees and duties included | Yes |
| Loan for repair, maintenance or improvement works on the property | Yes |
| Property tax due on the property | Yes |
| Income tax and social contributions on rents | No |
| Interest-only (in fine) loan to buy the property | Yes, on a declining basis |
| Loan granted by your parents, your adult children or your company | Non, sauf exceptions |
| Loan financing a property located abroad | No |
How much do you pay, with a worked example?
Assumptions: a married couple, resident outside France, in a country whose tax treaty does not cover wealth tax. On 1 January 2026, they hold an apartment in Paris worth €1,100,000, with no mortgage, and a furnished rental apartment in Bordeaux worth €450,000, bought with an amortising bank loan whose outstanding capital is €200,000. To keep it simple, the property tax, which is deductible, is not included.
- Patrimoine brut : 1 100 000 + 450 000 = 1 550 000 €.
- Net taxable wealth: 1,550,000 − 200,000 = €1,350,000, above the threshold of 1.3 million euros.
- Scale: 500,000 × 0.50% = €2,500, then 50,000 × 0.70% = €350, giving €2,850.
- Discount: 17,500 − 1.25% × 1,350,000 = 17,500 − 16,875 = €625.
- IFI due: 2,850 − 625 = €2,225.
- Variant: if the €200,000 loan came from the parents of one of the spouses, it would in principle not be deductible (article 974 of the CGI). Net wealth would be €1,550,000, with no discount, and the IFI would be 2,500 + 1,750 = €4,250.
What do tax treaties and the cap change?
Article 964 of the CGI applies subject to international treaties. Not all treaties cover wealth tax. If yours does, read how it treats buildings, shares in property companies and the elimination of double taxation when your country of residence also taxes wealth. The list of treaties is published on impots.gouv.fr.
The cap in article 979 of the CGI limits the total of IFI and income taxes to 75% of the previous year’s income. It is reserved for taxpayers resident in France on 1 January. Only so-called “Schumacker” non-residents, who derive all or almost all of their income from France, can also benefit from it.
How and when do you declare IFI?
IFI is declared at the same time as the income tax return, on form no. 2042-IFI, online or on paper. In 2026, the deadline for non-residents with French-source income was 21 May online and 19 May on paper. The 2027 dates have not been published yet.
If you have no French-source income, you do not file an income tax return. You then declare IFI online, or on paper with form no. 2042-IFI-COV attached to form no. 2042-IFI, ticking box 9GN.
For a non-resident, the base and the calculation of IFI are handled by the Recette des non-résidents: 10 rue du Centre, TSA 50014, 93465 Noisy-le-Grand Cedex. The tax then appears on the notice sent by the administration, payable before the deadline shown on it.
Frequently asked questions
Do my financial investments in France count towards IFI?
No, unless they represent French property. Your accounts, listed shares and non-property funds are not taxed. However, shares in SCIs, shares in companies that own buildings in France and the property-linked units of account of a life insurance contract are included for the part of their value that corresponds to property located in France, subject to the exclusions provided by law.
Can I benefit from the cap at 75% of my income?
In principle, no. The cap in article 979 of the CGI is reserved for taxpayers with their tax residence in France on 1 January of the tax year. So-called “Schumacker” non-residents, who derive all or almost all of their income from France, are an exception, because they are in a situation comparable to that of residents. Other non-residents pay IFI calculated under the scale, after any discount.
Is my mortgage deductible?
Yes, for its outstanding capital on 1 January, if it financed the purchase or the renovation works of a taxable property located in France. The notary fees and registration duties financed by the loan are included. An interest-only (in fine) loan is deducted on a declining basis according to the years elapsed. A family loan or a loan granted by your own company is in principle not deductible. Above 5 million euros of wealth, a cap applies.
I have no income in France: how do I declare?
You have no income tax return to file, but IFI still has to be declared if your net French property wealth exceeds 1.3 million euros. You can do so online from your impots.gouv.fr account. On paper, you attach form no. 2042-IFI-COV, which is used to identify you, to form no. 2042-IFI, ticking box 9GN. The file is handled by the Recette des non-résidents, in Noisy-le-Grand.
On what date is my wealth valued?
On 1 January of the tax year. This is the date on which we look at the market value of your assets, the outstanding capital of your loans and your tax residence. A property sold on 2 January therefore remains in the base for the year, and a property bought after 1 January only enters it the following year. Your residence on 1 January also determines the right to the cap.
Did the 2026 Finance Act change IFI?
Not the scale or the discount. Article 977 of the CGI, which sets them, has not changed since its creation on 1 January 2018: this is its version in force on 7 November 2026. The tax threshold remains 1.3 million euros. Reform proposals were debated in autumn 2025, but they do not appear in the text in force that we consulted.
Sources
- BOFiP, BOI-PAT-IFI-10-20-30, individuals resident outside France
- Légifrance, article 977 of the CGI, version in force on 7 November 2026
- BOFiP, BOI-PAT-IFI-40-10, threshold, scale and discount
- BOFiP, BOI-PAT-IFI-40-30-10, cap reserved for residents and Schumacker non-residents
- BOFiP, BOI-PAT-IFI-20-40-10, conditions for deducting debts and 60% cap above €5m
- BOFiP, BOI-PAT-IFI-20-40-20, interest-only (in fine) and open-ended loans
- BOFiP, BOI-PAT-IFI-20-40-30, non-deductible debts (family and intra-group loans)
- impots.gouv.fr, deadline for filing the 2026 IFI declaration, non-resident case (updated on 22 July 2026)
- DGFiP, “Vos contacts” sheet of the Direction des impôts des non-résidents (18 March 2026)
- DGFiP, IFI 2026 guidance notice (no. 52210#09): tax residence outside France, simplified form no. 2042-IFI-COV and box 9GN
- impots.gouv.fr, "I am a non-resident. How and where do I file and pay my real estate wealth tax (IFI)?" (form no. 2042-IFI-COV without income)
- impots.gouv.fr, conventions fiscales internationales
To go further on taxation: Income tax for a non-resident, The tax representative, Social contributions for a non-resident.
The information on this page is general and does not replace tax, legal or financial advice suited to your situation.
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