French Wealth Tax (IFI): Protecting Your Investment in France

French Wealth Tax (IFI): Protecting Your Investment in France

(الضريبة على الثروة العقارية في فرنسا: حماية استثمارك في فرنسا)

If you are a high-net-worth individual from the Gulf region investing in real estate in France, the Impôt sur la Fortune Immobilière (IFI)—also known as the French Wealth Tax—may significantly impact your financial strategy. This tax applies even to non-residents and can result in considerable annual payments if not managed correctly.

At Sassi Law Firm, we help Gulf-based investors structure and secure their property assets to minimize their exposure to IFI while remaining compliant with French law.

What Is the French Wealth Tax (IFI)?

(ما هو الضريبة على الثروة العقارية في فرنسا؟)

The IFI is an annual tax applied to real estate assets located in France whose net value exceeds €1.3 million. Unlike the former ISF, it no longer applies to financial investments—only to real estate.

It affects both French residents and non-residents, including Gulf investors, who hold French property directly or indirectly.

Does the IFI Affect Gulf Investors?

(هل تؤثر الضريبة على المستثمرين الخليجيين؟)

Yes. If you live in the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, or Oman and own French real estate worth more than €1.3 million, you are liable for the IFI.

However, only French real estate is taxable—not your global wealth. This tax is calculated per household, not per individual.

How Much Will You Pay?

(كم ستدفع؟)

The IFI is based on a progressive scale, ranging from 0.5% to 1.5% of the net real estate value after deductions:

Net Taxable Value

Tax Rate

€0 – €1.3 million

0%

€1.3m – €2.57 million

0.5–0.7%

€2.57m – €5 million

1.0%

€5m – €10 million

1.25%

Over €10 million

1.5%

Can Holding Companies Help?

(هل تفيد الشركات العقارية؟)

Many Gulf investors use entities such as SCI, SARL, or foreign companies to hold French property. While these structures may offer privacy or succession advantages, they do not guarantee exemption from IFI.

·       Transparent entities like an SCI transfer IFI liability to the shareholders.

·       Opaque structures may offer temporary shielding, but French tax authorities have tightened the rules.

We help investors choose the right structure based on transparency, asset protection, and tax optimization.

How to File Your IFI Declaration

(كيفية تقديم إقرار الضريبة)

IFI must be declared annually together with your French income tax return. If you have no income in France, you still need to file a standalone IFI declaration.

Protecting Your Wealth with Legal Strategies

(حماية ثروتك بالاستراتيجيات القانونية)

At Sassi Law Firm, we develop tailor-made tax strategies for Gulf investors to:

·       Reduce or eliminate IFI liability using legal deductions

·       Declare correctly and avoid penalties

·       Choose the right ownership structure (individual, corporate, or trust)

·       Plan for inheritance and succession in line with French and international law

·       Avoid double taxation and maximize treaty benefits where applicable

With over 30 years of experience in French and international tax law, we offer Gulf clients a trusted, discreet, and effective legal service.

Talk to a Trusted French Tax Lawyer Today

(تواصل مع محامٍ فرنسي موثوق اليوم)

Your investments in France deserve protection and foresight. Avoid unpleasant surprises, audits, or unnecessary taxes. Let our expert legal team guide you.

Email: wealth@sassi-avocats.com
Website: www.sassi-avocats.com
Phone: +33 7 71 58 58 58

 

Mabrouk Sassi

International Tax & Business Lawyer – Paris

 

Tel 00 33 7 71 58 58 58

luxury@sassi-avocats.com

 

Looking to invest in luxury real estate in France? I offer high-level legal and tax support to help you secure the right property with complete peace of mind — from due diligence to ownership structuring and all related tax implications.

 

I am not a real estate agent. As an independent lawyer, I work exclusively in your best interest, with no ties to brokers or developers.

 

With over 30 years of experience advising high-net-worth individuals and international clients, I also assist with complex tax matters, including aggressive tax audits, tax fraud investigations, and anti-money laundering compliance.

 

The extensive history of implementing tax and legal law sector has contributed to the development of a strong reputation, as demonstrated by the frequent appearances of Mr. SASSI, a legal professional, in many respected media outlets such as L’Express, Les Échos, L’Expansion, L'Entreprise, and BFM Radio, among others.

 

Our clients comprises both domestic entities, comprising firms and persons as well as international entities, including companies and individuals situated in regions such as Asia, the Middle East, Maghreb, and Africa.

 

Please feel free to reach out to us for any inquiries or requests for assistance.

 

Contact:

 

Mabrouk SASSI, lawyer Paris Bar

32 avenue Carnot – Paris 17th - France

luxury@sassi-avocats.com

Tel 07.71.58.58.58

 

The following links may be of assistance:

 

  • The General Tax Code (CGI) refers to the comprehensive set of regulations and laws that govern the taxation system within a certain jurisdiction. It encompasses the many provisions and guidelines that dictate the assessment

 

  • The provided link directs to the official website of Legifrance, which is the French government

 

  • The subject of discussion pertains to the doctrine of tax administration within the Ministry of Budget.

 

 

  • The provided link directs to the official website of the French tax administration, specifically to the section