The French Wealth Tax - Impôt de Solidarité sur la Fortune (I.S.F.) - is becoming IFI

The Wealth Tax, in French Impôt de Solidarité sur la Fortune (I.S.F.), has been replaced at the 1st of January 2018 by the Impôt sur la Fortune Immobilière (I.F.I.) which has been limited to the real estate property (owned directly or through companies) and which is largely inspired by the I.S.F.’s rules excepting, in particular, the following two major new rules :

Putting a stop to the in fine loans’ never-ending and full deductibility

Under I.S.F. rules, in fine loans could be deductible in full, each year, provided that they met certain criteria regarding their purpose, timing, formalism and modalities. In other words, when complying with the above mentioned conditions, the full amount of unpaid capital could be offset each year against the taxable French (deemed) assets value.

The new rule, which has been codified in the article 974 II of Code Général des Impôts, has introduced an amortization element in the loan, so that the deductible amount will reduce annually taking into account the years passed since the initial subscription of the loan compared to the entire loan period.

Example : on 2018, a client subscribes a 5MEuros in fine loan, for 5 years duration, which fulfils all I.F.I. deductibility criteria. Each year, the percentage of deductibility of the loan will decrease by 100/5 = 20% of the initial amount lent, which is 1ME less each year. Therefore, on 2019, the client could offset 4ME only (i.e. 80% of the amount lent), 60% on 2020 (3ME), 40% on 2021 (2ME), 20% on 2022 (1ME) and, starting from 2023, no further deduction will be allowed regarding this loan.

Loans’ deductibility capped for high value taxable assets.

Under previous I.S.F. rules and provided that they meet the above mentioned criteria, the loan’s capital could be deductible in full.

The New rule, which is codified in the article 974 III of Code Général des Impôts, has introduced the following limitation in the loan’s capital deductibility: when the market value of French real estate/shares of real estate Company exceeds 5ME and the deductible debts exceed 60% of such market value, such debt’s excess will be deductible only to the extent of 50%.

Example: a client purchases a French property for 10ME on 2018, fully financed by a loan of 10ME. The amount of the debt up to 60% of the property’s market value (i.e. 6ME) is fully deductible, while the  amount of the debt exceeding 60% of the property’s market value (i.e. 4ME) is only deductible for 50% (i.e. 2ME). The loan’s capital deductibility is therefore capped to 6 + 2 = 8ME.

Sale - Villa - Sainte-Maxime

Reference : 8534 - 9 000 000 €
surface Living area : 592 m²
terrain Land area : 3370 m²
chambres Bedrooms : 5
sdb Bathrooms : 6

Luxury sea view property

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Sale - Apartment - Cannes

Reference : 0169 - 6 500 000 €
surface Living area : 201 m²
terrasse Terrace : 26 m²
chambres Bedrooms : 4
sdb Bathrooms : 5

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Sale - Villa - Saint-Tropez
Charming villa

Reference : 8540 - 3 350 000 €
surface Living area : 160 m²
terrain Land area : 3500 m²
chambres Bedrooms : 3
sdb Bathrooms : 3

Saint-Tropez, close to the beach

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Sale - Villa - Sainte-Maxime
Sea view

Reference : 8522 - 4 850 000 €
surface Living area : 400 m²
terrain Land area : 2260 m²
chambres Bedrooms : 8
sdb Bathrooms : 8

Modern sea view villa

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Sale - Villa - Saint-Tropez
Les Parcs de Saint-Tropez

Reference : 8514 - 4 950 000 €
surface Living area : 265 m²
terrain Land area : 2600 m²
chambres Bedrooms : 6
sdb Bathrooms : 1

Provencal-style villa in the Parks of Saint-Tropez

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Sale - Villa - Vallauris
Panoramic View

Reference : 2020 - 3 900 000 €
surface Living area : 300 m²
terrain Land area : 2300 m²
chambres Bedrooms : 5
sdb

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Sale - Villa - Golfe Juan
Contemporary villa

Reference : 2104 - 7 900 000 €
surface Living area : 370 m²
terrain Land area : 2000 m²
chambres Bedrooms : 5
sdb Bathrooms : 5

Charming contemporary villa in Cannes Californie.

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Sale - Villa - Le Cannet
Flat grounds

Reference : 1484 - Price : Please contact us
surface Living area : 300 m²
terrain Land area : 6268 m²
chambres Bedrooms : 4
sdb Bathrooms : 4

Charming Provencal villa with panoramic sea view

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Sale - Villa - Cannes
Belle Epoque

Reference : 1331 - 16 800 000 €
surface Living area : 1000 m²
terrain Land area : 3336 m²
chambres Bedrooms : 10
sdb Bathrooms : 13

Hôtel Particulier Cannes

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Sale - Villa - La Roquette sur Siagne
Sea view

Reference : 3412 - 3 950 000 €
surface
terrain Land area : 7401 m²
chambres Bedrooms : 4
sdb Bathrooms : 5

Splendid Provencal villa with panoramic sea view

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Sale - Villa - Saint-Tropez
Downtown

Reference : 8505 - 4 150 000 €
surface Living area : 350 m²
terrain Land area : 1733 m²
chambres Bedrooms : 6
sdb Bathrooms : 6

Saint-Tropez, near the beaches and the village center

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Sale - Villa - Gassin
Sea view

Reference : 8527 - 3 500 000 €
surface Living area : 280 m²
terrain Land area : 1100 m²
chambres Bedrooms : 3
sdb Bathrooms : 2

A panoramic sea view

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Sale - Apartment - Cannes
Downtown

Reference : 0168 - 2 280 000 €
surface Living area : 161 m²
terrasse Terrace : 40 m²
chambres Bedrooms : 3
sdb Bathrooms : 3

Beautiful 4-room apartment

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Sale - Apartment - Cannes
Penthouse

Reference : 12528 - 2 990 000 €
surface Living area : 145 m²
terrasse Terrace : 115 m²
chambres Bedrooms : 4
sdb Bathrooms : 3

Amazing penthouse

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Sale - Villa - Théoule-sur-Mer
Sea view

Reference : 8132 - 4 700 000 €
surface Living area : 395 m²
terrain Land area : 2416 m²
chambres Bedrooms : 6
sdb Bathrooms : 6

Modern property with an exceptional location

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Sale - Apartment - Saint-Tropez
Les Parcs de Saint-Tropez

Reference : 8511 - 5 250 000 €
surface Living area : 320 m²
terrasse Terrace : 57 m²
chambres Bedrooms : 7
sdb Bathrooms : 5

Superb duplex 5-bedroom penthouse apartment with sea view

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Sale - Apartment - Saint-Tropez
Near downtown

Reference : 8512 - 2 750 000 €
surface Living area : 137 m²
terrasse Terrace : 6 m²
chambres Bedrooms : 3
sdb Bathrooms : 3

Overlooking The port of Saint-Tropez....

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Sale - Villa - Mougins
Closed estate

Reference : 3413 - 4 300 000 €
surface Living area : 350 m²
terrain Land area : 2071 m²
chambres Bedrooms : 5
sdb Bathrooms : 4

Elegant Provencal mas in the heart of Mougins

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Sale - Villa - Mandelieu-la-Napoule
Contemporary villa

Reference : 8133 - 3 990 000 €
surface Living area : 250 m²
terrain Land area : 2204 m²
chambres Bedrooms : 4
sdb Bathrooms : 4

Contemporary villa with panoramic sea view

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Sale - Apartment - Cannes
Croisette

Reference : 11165 - 3 500 000 €
surface Living area : 130 m²
terrasse Terrace : 26 m²
chambres Bedrooms : 3
sdb Bathrooms : 3

Overlooking the Port Canto 4/5 rooms apartment of 130,19 sqm LC

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Sale - Villa - Cannes
Panoramic View

Reference : 1250 - 7 950 000 €
surface Living area : 580 m²
terrain Land area : 4500 m²
chambres Bedrooms : 8
sdb Bathrooms : 6

Ultra residential area, In the vicinity of the Croisette

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Sale - Villa - Cap d'Antibes
Sea side

Reference : 7232 - 32 000 000 €
surface Living area : 1000 m²
terrain Land area : 2257 m²
chambres Bedrooms : 8
sdb Bathrooms : 12

Exceptional property with direct access to the sea

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Rent - Villa - Cap d'Antibes
Near sea side

Reference : 7232L - Price from 32 000 000 €the week
surface Living area : 1000 m²
terrain Land area : 2257 m²
chambres Bedrooms : 8
sdb Bathrooms : 12
piscine Pool : 1
vue Sea view Panoramic

Exceptional property with direct access to the sea

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Sale - Villa - Mougins
Closed estate

Reference : 3410 - 3 450 000 €
surface Living area : 380 m²
terrain Land area : 2480 m²
chambres Bedrooms : 6
sdb Bathrooms : 6

Splendid villa with nice sea view in a gated domain

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