IFI 2025: how to anticipate, optimize or avoid it?

The Tax on Real Estate Wealth (IFI) concerns people whose net taxable real estate assets exceed 1.3 million euros. If you are concerned or close to the threshold, here is what you need to know to avoid unpleasant surprises... and act in time.

🔍 1. Who is covered by the IFI in 2025?

You are liable for the IFI if, as of 1 January 2025, the value of your taxable net property assets exceeds €1.3 million. This includes:

Your personal real estate (main residence – with a 30% allowance, secondary residence...),

Real estate owned through an SCI or in indivision,

The shares of real estate companies (SIIC, SCPI, etc.),

Buildings held through a holding company.

👉 Note: only real estate assets are taxed, not financial investments, nor cash.

🛠️ 2. How to anticipate or reduce IFI?

Here are some effective (and legal) avenues for optimization:

1. Conduct a fair valuation of your assets

Overvaluing a property can wrongly impose on you. An expert can help you determine the true market value of your assets.

2. Deduct outstanding debts and loans

You can deduct outstanding credits (capital remaining due) related to taxable goods, as well as certain specific debts (works, taxes, etc.).

3. Invest in assets not taxable to the IFI

Professional goods or operational SME shares are exempt from the IFI under certain conditions.

4. Make donations or donations

Reducing your real estate assets through a donation to a relative or a structure can limit your taxable base.

5. Use IFI capping

The IFI cannot exceed 75% of your income. If this is the case, you can request a reduction.

❌ 3. Can we "avoid" the IFI completely?

Avoid, no. But reorganize your wealth strategically to lower or exit the IFI, yes.

You can for example:

Transform a rental property into temporary bare-property,

Hold certain assets via adapted structures (e.g. SCI at the IS),

Diversify your wealth (furniture, life insurance, private equity...).

📅 What needs to be done now

✅ Conduct a heritage assessment to estimate your exposure at IFI 2025,

✅ Carry out any restructuring before December 31, 2025,

✅ Be accompanied to secure your procedures and avoid errors.

We can assist you to anticipate, optimize and correctly declare your IFI.

📩 Book an exchange with us today.