French Wealth Tax Mortgages (IFI) for Non-Residents

Mortgages for Wealth Tax in France: Your Key to Overseas Property Investment

Considering investing in French real estate? Understanding French wealth tax and how it impacts property ownership is crucial. As international mortgage brokers and buyer’s agents specialising in assisting non-residents in purchasing property overseas, we at Worldwide Property Co are here to guide you through the intricate process.

What is French Wealth Tax?

French Real Estate Wealth Tax, known as “Impôt de Solidarité sur la Fortune” (ISF), is an annual tax imposed on the worldwide assets of residents in France. For non-residents, it is solely based on the equity in any properties owned in France. The tax is calculated on equity exceeding €800,000, with an allowance of €1.3 million.

Do Foreigners Pay Wealth Tax in France?

Yes, non-residents who own property in France are subject to French Wealth Tax. However, the tax is applicable only on the equity in French properties exceeding €800,000.

How Do I Avoid Wealth Tax in France?

One effective strategy to mitigate wealth tax in France is by securing a mortgage against your French property. By reducing your equity through a mortgage, you can minimise or eliminate your wealth tax liability. Some banks even offer 100% mortgages, effectively reducing your equity to zero.

Is There an Exemption from Wealth Tax in France?

Yes, there is a five-year partial exemption for individuals relocating to France, covering assets outside France. This exemption applies to French residents who meet specific criteria.

For more comprehensive overview about the French Wealth Tax, including rate examples and eligibility criteria please view our Guide to French Wealth Tax 2024.

Disclaimer: The information provided is for general guidance only and should not be construed as legal or tax advice. Seek independent legal and tax advice before making any decisions related to property purchases and wealth tax obligations.

Expert Mortgage Advisory Services Tailored to Your Needs

Investing in real estate in France can be a lucrative venture, but navigating the complexities of wealth tax requires expert guidance. At Worldwide Property Co, our experienced team offers tailored mortgage solutions to help you optimise your investment.

Ready to start your journey to French property ownership? Contact us today and book for your personalised mortgage consultation with our experienced international mortgage advisers.