Photo: PexelsIn short
- Trigger threshold: 1.3 million euros of net real estate assets on January 1, 2026
- 30 percent allowance on the main residence
- Progressive scale from 0.5 percent to 1.5 percent
- Donations to public interest organisations: 75 percent reduction, capped at 50,000 euros
The IFI replaced the ISF in 2018. It only covers real estate assets, leaving financial and professional assets out of its scope. Here are the rules applicable in 2026.
Threshold and 2026 scale
The trigger threshold remains fixed at 1.3 million euros of net real estate assets. Once exceeded, the scale applies from 800,000 euros.
| Wealth bracket | Rate |
|---|---|
| Up to 800,000 euros | 0 percent |
| 800,001 to 1.3 million | 0.5 percent |
| 1.3 million to 2.57 million | 0.7 percent |
| 2.57 million to 5 million | 1 percent |
| 5 million to 10 million | 1.25 percent |
| Above 10 million | 1.5 percent |
Taxable assets and exemptions
Included in the base: main residence, secondary homes, rental properties, SCPI and SCI shares, some company shares holding real estate.
The main residence benefits from an automatic 30 percent allowance on its market value. Assets dedicated to the taxpayer's professional activity are fully exempt.
Legal reduction strategies
Several levers allow the IFI to be reduced:
- Donations to public interest organisations: 75 percent reduction of the amount paid, capped at 50,000 euros per year
- Deductible debts: ongoing mortgages, property tax due
- Dismemberment of ownership: the beneficial owner alone is liable in general
- Bare ownership investment: reduces the taxable base during the dismemberment period
The IFI is declared at the same time as income tax. The valuation of assets on January 1st binds the taxpayer, underestimation can trigger a reassessment. For optimisation, see our articles on the [PER](/en/blog/per-vs-life-insurance/) and [FCPR](/en/blog/fcpr-investing-unlisted/) which fall outside the scope of IFI.
Useful links
To understand other tax planning mechanisms, browse our glossary. For more on wealth optimisation, see our article on life insurance and our analyses on FIP and FCPI.