Question to an expert
I bought a house in another country, is it included in the calculation of the IFI?
The acquisition of a property abroad can lead to several consequences, which are more in the direction of the addition of tax obligations than in that of their subtraction. Thus, the purchaser with international aims will have to inquire about the existence of taxes to be paid in the country of destination, but will also have to take into account the fact that the real estate wealth tax (IFI) applies to all real estate owned by a person resident in France, whether located in France or abroad.
A good surprise can however come from reading international tax treaties, because some grant the country of location of the property the right to levy a tax on wealth. However, these agreements still often allow the application of the IFI in France – its amount will then simply be reduced by the wealth tax paid abroad.
A few rare conventions oppose such a reimposition in France. This is the case of those concluded with Mauritius, the Netherlands or even Finland. In these few countries, the acquisition of a property abroad can reserve a good surprise with regard to the IFI.
In any case, an informed investor will consider checking all the legal and tax consequences of his project before launching.