Given France’s well-known tax complexity, it is not surprising that wealth tax regulations remain a focal point for high-net-worth individuals in 2025. This article offers an in-depth, strictly factual overview of how the French wealth tax system works, with precise data for this year.
French Wealth Tax in 2025: Overview and Assessment Basis
Wealth tax in France, currently known as the Impôt sur la Fortune Immobilière (IFI), is a progressive levy applied specifically to real estate assets. Only property-based net wealth is subject to this tax, not financial assets or business investments. The taxable base is the total value of real estate held by an individual or household, calculated as assets minus eligible liabilities, above a certain threshold.
Threshold and Structure
Individuals and households with French real estate valued above €1,300,000 are required to file and potentially pay the wealth tax. The system is progressive: as taxable value increases, so does the marginal tax rate applied to each bracket. No minimum or maximum holding period is enforced for assets subject to this tax.
Wealth Tax Rates and Brackets for 2025
The French wealth tax is structured with progressive brackets. The table below presents the current rates and corresponding taxable value ranges in EUR:
| Taxable Real Estate Value (EUR) | Rate (%) |
|---|---|
| €1,300,000 – €1,800,000 | 0.5% |
| €1,800,000 – €2,570,000 | 0.7% |
| €2,570,000 – €5,000,000 | 1.0% |
| €5,000,000 – €10,000,000 | 1.25% |
| over €10,000,000 | 1.5% |
For reference, at an exchange rate of 1 EUR = 1.08 USD (as of early 2025), the threshold €1,300,000 is approximately $1,404,000 (USD).
Progressive Calculation Explained
Only the portion of the real estate value within each bracket is taxed at that bracket’s rate. For example, if your property is valued at €2,000,000, the tax is calculated as follows:
- The first €1,300,000 is exempt.
- The next €500,000 (€1,300,000–€1,800,000) is taxed at 0.5%.
- The remaining €200,000 (€1,800,000–€2,000,000) is taxed at 0.7%.
No additional surtaxes are imposed, and there are no special holding period requirements.
Key Facts and Statistics
- Tax type: Progressive, based on real estate property value only
- Threshold: €1,300,000 (approx. $1,404,000 USD)
- Maximum rate: 1.5% for values above €10,000,000
- Basis of assessment: Net real estate (assets minus liabilities)
- Applies to: Individuals and households resident in France, as well as non-residents holding French property
Pro Tips: Navigating France’s Wealth Tax in 2025
- Review asset structure annually. Given shifting real estate values and exchange rates, reassess your French property portfolio each year to ensure accurate compliance and minimize overpayment.
- Maximize deductible liabilities. All qualifying property-related debts can offset your taxable base. Document mortgage information carefully.
- Confirm residency status for each household member. Taxation can differ for residents and non-residents; knowing precisely who is liable helps prevent costly errors.
Further Resources and Official Information
For the most up-to-date regulations and official guidelines, visit the French tax administration’s homepage: impots.gouv.fr.
In summary, France’s 2025 wealth tax continues to target substantial real estate holdings with a progressive, bracketed structure. The carefully defined rates and thresholds are essential reference points for anyone holding or considering acquiring French real estate. Paying close attention to valuation, liabilities, and residency status is critical for efficient and compliant tax management in this jurisdiction.