How is the tax home appraised? This notion is important to know the extent of your property subject to the IFI (Real Estate Tax).   


Do you own real estate assets in France and abroad? Your professional activity leads you to share your life between two countries? While you a priori fulfill the conditions to be accountable to the IFI, the base of this tax depends on the location of your tax domicile.

Domiciled in France

You are subject to the IFI on all of your property and property rights, whether located in France or abroad if your tax domicile is in France (metropolitan France or overseas departments). This condition is fulfilled in the eyes of the tax authorities if you meet one of the following criteria:
You usually live in France. Just stay there for more than half of the year. The work abroad of your spouse is then irrelevant.

You have a professional activity (salaried or independent) in France. Of course, it should not be an activity that is incidental to a main activity abroad.
Your economic interests are in France. This is the case if you have made most of your investments, installed the headquarters of your business or the administration of your property on the national territory.

Domiciled abroad

If you are not in any of the above cases, then you are liable to the IFI for French property and real estate rights only. As a result, you are not taxable on your real estate assets held abroad. You do not have to consider their value in assessing whether or not you exceed the IFI tax threshold.


International Convention

Your situation as an indebted to the IFI (fiscally domiciled in France and holder of property abroad or domiciled abroad) can be softened in the presence of an international convention binding the two countries. The goal is to avoid double taxation. In this case, the convention prevails over the rules of national law. Those previously applicable in the field of TFR are intended to be for the IFI. For more information, you can contact the Non-Resident Personal Income Tax Department

Return to France

You come back to France after an expatriation. You are only subject to the IFI on your property and real estate rights located in France. In other words, you do not become taxable on your real estate located in France and abroad until the year after your return.
An exception, if you transfer your fiscal domicile in France after being domiciled abroad for five years. You only pay the tax on your French real estate assets. This temporary bonus applies until December 31 of the fifth year following the year in which you establish your tax domicile in France. For example, if you arrive on French soil this year, the measure concerns the payment of the IFI from 2019 to 2023.
Namely: The fiscal domicile is assessed on January 1 and not on the whole year, contrary to the income tax. An expatriation thus has influence only for the calculation of the IFI of the following year.

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