Question to an expert
We are cohabiting, do we have to declare our joint real estate assets?
The real estate wealth tax (IFI) is due by individuals if the net real estate assets of their tax household exceeds 1.3 million euros on 1er January of the tax year.
The concept of tax household is understood differently depending on the tax concerned. In terms of IFI, married or civil partnership couples, whatever their matrimonial regime, are required to establish a joint declaration including the assets of their minor children. The IFI declaration procedures may be less obvious for cohabiting partners.
L’article 964 of the general tax code provides that people living in a known cohabitation are also subject to joint taxation – even though they declare their income separately.
Stable and continuous common life
This notion is defined as “a de facto union, characterized by a common life presenting a character of stability and continuity, between two people, of different sex or of the same sex, who live as a couple” (article 515-8 of the civil code).
If taxpayers fall within this definition, the IFI base is constituted by the net worth, as of 1er January of the tax year, of all taxable assets belonging to each of the cohabiting partners as well as their minor children. This heritage includes not only real estate assets and rights held directly, but also the shares or shares of companies holding real estate, for their representative fraction thereof.
However, if the person living in a known cohabitation is also married to a third person, they remain subject to joint IFI taxation with their legitimate spouse, and their real estate must then be attached to their legal household.