‘One simple way to reduce your French wealth tax (IFI) liability is to make your French property your main residence. When declared as your principal home, its taxable value is automatically reduced by 30% for IFI purposes.’

5 Things You Need to Know

About French Wealth Tax (IFI)

France’s real estate wealth tax — could affect you if your net property assets exceed €1.3 million.

Thinking of buying property in, or moving to France ? Then this is essential reading

Eiffel Tower along the River Seine during sunset with boats on the water and a partly cloudy sky.

1. IFI Kicks In Lower Than You Think

Once your taxable real estate exceeds €1.3 million, the tax applies retroactively from €800,000.

2. It’s Not Just French Property

  • IFI applies to French real estate from day one.

  • If you are French tax resident, after 5 years of residency, your worldwide real estate becomes taxable.

  • It includes property- investments.

  • Debts can reduce your exposure — but only if they’re properly structured.

3. The Five-Year Grace Period Is Crucial

If you haven’t been a French tax resident in the past five years, you benefit from a temporary exemption on your worldwide real estate for wealth tax purposes for five tax years.

Plan ahead before you move — once you become a French resident, many tax optimisation opportunities close off.

4. Know What You Can (and Can’t) Deduct

Deductible:

  • Mortgages

  • Construction loans

  • Unpaid property-related charges

Not deductible:

  • Personal or “bullet” loans

  • Family loans without formal documentation

5. Get Ahead of the Game

Don’t wait until after your move. At MiraClair Wealth, we help British nationals plan before becoming French residents.

We specialise in:

  • Cross-border wealth structuring

  • IFI and estate tax mitigation

  • Assurance vie and investment wrappers

  • Retirement and inheritance planning

Know Your Exposure in Minutes

Use our free IFI Calculator to estimate your potential liability. Fast, anonymous, and fully up to date.

Important Information


The information on this page is for general guidance only and does not constitute personal financial, tax, or investment advice. Tax treatment depends on individual circumstances and may change in the future. Cross-border planning should always be reviewed with a qualified professional who understands both UK and French regulations.

If you are considering making any changes to your pension or investments, we strongly recommend seeking personalised advice.

MiraClair Wealth
Bridging UK wealth with French clarity.