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 - Mougins

Reference : 3375 - Price : Please contact us
surface Living area : 414 m²
terrain Land area : 2800 m²
chambres Bedrooms : 5
sdb

Elegant Provencal villa in a closed estate

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Sale - Villa - Cannes
Californie

Reference : 1466 - 12 900 000 €
surface Living area : 405 m²
terrain Land area : 2500 m²
chambres Bedrooms : 7
sdb

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Reference : 8528 - 2 500 000 €
surface Living area : 150 m²
terrasse
chambres Bedrooms : 5
sdb Bathrooms : 2

A fisherman's house a few meters from the port

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Sale - Villa - Le Lavandou

Reference : 8521 - 15 000 000 €
surface
terrain
chambres
sdb

Near Saint-Tropez, 95-hectare estate

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Sale - Villa - Saint-Tropez

Reference : 8574 - 4 200 000 €
surface Living area : 260 m²
terrain Land area : 1262 m²
chambres Bedrooms : 5
sdb Bathrooms : 4

The village by foot

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Sale - Villa - Saint-Tropez

Reference : 8535 - 11 000 000 €
surface Living area : 400 m²
terrain Land area : 1493 m²
chambres Bedrooms : 5
sdb

The village of Saint-Tropez by foot

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Sale - Villa - Ramatuelle

Reference : 8531 - 9 700 000 €
surface Living area : 280 m²
terrain Land area : 2200 m²
chambres Bedrooms : 6
sdb Bathrooms : 6

In a waterfront estate

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Sale - Villa - Ramatuelle

Reference : 8530 - 21 000 000 €
surface Living area : 350 m²
terrain Land area : 3000 m²
chambres Bedrooms : 5
sdb

Property with sea view and private sea access

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Sale - Villa - Cap d'Antibes

Reference : 7239 - 7 900 000 €
surface Living area : 780 m²
terrain Land area : 6452 m²
chambres
sdb

Historical property

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Sale - Villa - Cap d'Antibes

Reference : 7237 - 9 350 000 €
surface Living area : 1300 m²
terrain Land area : 2851 m²
chambres Bedrooms : 6
sdb

Modern villa with sea view

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Sale - Villa - Cap d'Antibes
Waterfront

Reference : 7248 - 10 500 000 €
surface Living area : 200 m²
terrain Land area : 633 m²
chambres
sdb

Cap d’Antibes water’s edge

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Sale - Villa - Mougins

Reference : 3431 - 3 850 000 €
surface Living area : 300 m²
terrain Land area : 1301 m²
chambres Bedrooms : 4
sdb Bathrooms : 4

Mougins - In a residential area

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Sale - Villa - Saint-Tropez

Reference : 8502 - 9 900 000 €
surface Living area : 400 m²
terrain Land area : 869 m²
chambres Bedrooms : 7
sdb Bathrooms : 7

An elegant property in a few dozen meters from the port of Saint-Tropez

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Sale - Villa - Mougins

Reference : 3415 - 7 900 000 €
surface Living area : 550 m²
terrain Land area : 3000 m²
chambres Bedrooms : 6
sdb Bathrooms : 7

Superb contemporary villa

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Sale - Apartment - Cannes

Reference : 10102 - Price : Please contact us
surface Living area : 130 m²
terrasse Terrace : 20 m²
chambres Bedrooms : 3
sdb Bathrooms : 3

In the heart of the Croisette


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Sale - Apartment - Cannes

Reference : 10489 - 2 990 000 €
surface Living area : 210 m²
terrasse Terrace : 125 m²
chambres Bedrooms : 3
sdb Bathrooms : 3

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Sale - Apartment - Cannes

Reference : 0164 - 2 490 000 €
surface Living area : 145 m²
terrasse
chambres Bedrooms : 4
sdb Bathrooms : 1

Cannes city center

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Rent - Villa - Eze
Dominant position

Reference : 9350L - Price : Please contact us
surface Living area : 383 m²
terrain Land area : 10000 m²
chambres Bedrooms : 5
sdb Bathrooms : 5
piscine Piscine : Non
vue Non

Splendid property with superb sea view

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Sale - Villa - Châteauneuf de Grasse
Provencal bastide

Reference : 5079 - 5 900 000 €
surface Living area : 530 m²
terrain Land area : 22000 m²
chambres Bedrooms : 11
sdb Bathrooms : 5

Remarkable traditional stone mas

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Sale - Villa - Gassin

Reference : 8559 - 3 450 000 €
surface Living area : 200 m²
terrain
chambres Bedrooms : 4
sdb Bathrooms : 2

Close to the village and the beaches of Saint-Tropez

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Sale - Villa - Saint-Tropez

Reference : 8536 - 11 300 000 €
surface Living area : 500 m²
terrain Land area : 1765 m²
chambres Bedrooms : 8
sdb Bathrooms : 7

Sea view property on foot from the center

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Sale - Villa - Saint-Tropez

Reference : 8533 - 8 900 000 €
surface Living area : 600 m²
terrain
chambres Bedrooms : 12
sdb Bathrooms : 12

Saint-Tropez, property in a very prestigious district

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Sale - Villa - Sainte-Maxime

Reference : 8555 - 3 990 000 €
surface Living area : 331 m²
terrain Land area : 2198 m²
chambres Bedrooms : 4
sdb Bathrooms : 3

Beautiful and modern sea view villa

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Sale - Villa - Gassin
Closed estate

Reference : 8541 - 3 125 000 €
surface Living area : 192 m²
terrain Land area : 1265 m²
chambres Bedrooms : 4
sdb Bathrooms : 4

Within a private domain

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