The Wealth Tax, in French Impôt de Solidarité sur la Fortune (I.S.F.), has been replaced at the 1st of January 2018 by the Impôt sur la Fortune Immobilière (I.F.I.) which has been limited to the real estate property (owned directly or through companies) and which is largely inspired by the I.S.F.’s rules excepting, in particular, the following two major new rules :

Putting a stop to the in fine loans’ never-ending and full deductibility

Under I.S.F. rules, in fine loans could be deductible in full, each year, provided that they met certain criteria regarding their purpose, timing, formalism and modalities. In other words, when complying with the above mentioned conditions, the full amount of unpaid capital could be offset each year against the taxable French (deemed) assets value.

The new rule, which has been codified in the article 974 II of Code Général des Impôts, has introduced an amortization element in the loan, so that the deductible amount will reduce annually taking into account the years passed since the initial subscription of the loan compared to the entire loan period.

Example : on 2018, a client subscribes a 5MEuros in fine loan, for 5 years duration, which fulfils all I.F.I. deductibility criteria. Each year, the percentage of deductibility of the loan will decrease by 100/5 = 20% of the initial amount lent, which is 1ME less each year. Therefore, on 2019, the client could offset 4ME only (i.e. 80% of the amount lent), 60% on 2020 (3ME), 40% on 2021 (2ME), 20% on 2022 (1ME) and, starting from 2023, no further deduction will be allowed regarding this loan.

Loans’ deductibility capped for high value taxable assets.

Under previous I.S.F. rules and provided that they meet the above mentioned criteria, the loan’s capital could be deductible in full.

The New rule, which is codified in the article 974 III of Code Général des Impôts, has introduced the following limitation in the loan’s capital deductibility: when the market value of French real estate/shares of real estate Company exceeds 5ME and the deductible debts exceed 60% of such market value, such debt’s excess will be deductible only to the extent of 50%.

Example: a client purchases a French property for 10ME on 2018, fully financed by a loan of 10ME. The amount of the debt up to 60% of the property’s market value (i.e. 6ME) is fully deductible, while the  amount of the debt exceeding 60% of the property’s market value (i.e. 4ME) is only deductible for 50% (i.e. 2ME). The loan’s capital deductibility is therefore capped to 6 + 2 = 8ME.

Sale - Villa - Mougins
Absolute calmness

Reference : 3695 - 6 500 000 €
surface Living area : 480 m²
terrain Land area : 3296 m²
chambres Bedrooms : 5
sdb Bathrooms : 5

Magnificent country house in sought after area

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Sale - Villa - Ramatuelle
Pampelonne

Reference : 8530 - 21 000 000 €
surface Living area : 350 m²
terrain Land area : 3000 m²
chambres Bedrooms : 5
sdb Bathrooms : 5

Property with sea view and private sea access

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Sale - Villa - La Croix-Valmer
Luxury

Reference : 8444 - Price : Price upon request
surface Living area : 802 m²
terrain Land area : 31066 m²
chambres Bedrooms : 11
sdb Bathrooms : 10

Exceptional newly built property - 3 hectares - Sea view

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Sale - Villa - Mougins

Reference : 3528 -
surface Living area : 400 m²
terrain Land area : 5000 m²
chambres Bedrooms : 5
sdb Bathrooms : 4

Closed domain - village view

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Sale - Villa - Saint-Tropez
Near downtown

Reference : 83260 - 5 400 000 €
surface Living area : 250 m²
terrain Land area : 3600 m²
chambres Bedrooms : 5
sdb Bathrooms : 4

Charming Property in the Heart of Saint-Tropez

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Sale - Villa - Le Cannet

Reference : 3700 - 7 950 000 €
surface Living area : 570 m²
terrain Land area : 3084 m²
chambres Bedrooms : 5
sdb Bathrooms : 5

New contemporary villa with views of the Esterel hills

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Sale - Apartment - Beausoleil
Near Monaco

Reference : 9613A - 2 384 500 €
surface Living area : 157 m²
terrasse Terrace : 119 m²
chambres Bedrooms : 3
sdb

3 bedroom apartment top floor with an interior patio and a rooftop terrace with panoramic sea views in Beausoleil

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Sale - Villa - Cap d'Antibes
Exceptional property

Reference : 7276 - 25 000 000 €
surface Living area : 961 m²
terrain Land area : 3500 m²
chambres Bedrooms : 9
sdb Bathrooms : 8

Cap d'Antibes

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Sale - Villa - Vence
Panoramic view

Reference : 6087 - 5 900 000 €
surface Living area : 461 m²
terrain Land area : 17720 m²
chambres Bedrooms : 8
sdb Bathrooms : 5

Vence - Large Domain with panoramic Sea Views

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Sale - Villa - Ramatuelle
Near sea side

Reference : 8713 -
surface Living area : 288 m²
terrain Land area : 3200 m²
chambres Bedrooms : 6
sdb Bathrooms : 5

family house on the Pampelonne's beaches

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Sale - Apartment - Paris 16

Reference : PRD04 - 12 900 000 €
surface Living area : 392 m²
terrasse
chambres Bedrooms : 4
sdb Bathrooms : 4

Diamant sur le Parc

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Sale - Villa - Versailles

Reference : PHR01 - Price : Price upon request
surface Living area : 986 m²
terrain
chambres
sdb

Historic Pavillon - Château de Versailles

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Sale - Villa - La Colle-sur-Loup
Architect villa

Reference : 6085 - 16 000 000 €
surface Living area : 700 m²
terrain Land area : 16709 m²
chambres Bedrooms : 8
sdb Bathrooms : 7

Splendid Provençale property sea view

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Sale - Villa - Cannes

Reference : 2942 - Price : Price upon request
surface Living area : 950 m²
terrain Land area : 19999 m²
chambres Bedrooms : 10
sdb

Private estate located on the hills of Cannes, in the exclusive Super Cannes neighborhood

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Sale - Apartment - Cannes
Croisette

Reference : 12684 - 2 190 000 €
surface Living area : 94 m²
terrasse Terrace : 11 m²
chambres Bedrooms : 1
sdb

Luxurious Renovated Apartment with Sea View and High-End Features

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Sale - Villa - Vallauris

Reference : 2961 - 6 950 000 €
surface Living area : 416 m²
terrain
chambres Bedrooms : 6
sdb

Rare property with tennis court

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Sale - Villa - Saint-Tropez
Walking distance to the village

Reference : 8502 -
surface Living area : 330 m²
terrain Land area : 869 m²
chambres Bedrooms : 7
sdb Bathrooms : 7

An elegant property in a few dozen meters from the port of Saint-Tropez

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Sale - Apartment - Cannes
Croisette

Reference : 13030 - 3 250 000 €
surface Living area : 112 m²
terrasse
chambres Bedrooms : 3
sdb Bathrooms : 2

CANNES CROISETTE-EXCLUSIVITE - 4 rooms

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Sale - Apartment - Antibes
Centre

Reference : 12683A - 2 438 000 €
surface Living area : 164 m²
terrasse Terrace : 21 m²
chambres Bedrooms : 3
sdb Bathrooms : 3

In the heart of old Anibes

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Sale - Villa - Valbonne
Walking distance to the village

Reference : 5252 - 9 950 000 €
surface Living area : 820 m²
terrain Land area : 19800 m²
chambres Bedrooms : 8
sdb Bathrooms : 5

Valbonne : Stately and elegant Residence

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Sale - Apartment - Cannes
Californie

Reference : 12678 - 6 190 000 €
surface Living area : 248 m²
terrasse Terrace : 78 m²
chambres Bedrooms : 4
sdb

Canne Californie

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Sale - Apartment - Cannes
Sea side

Reference : 1531A - 2 950 000 €
surface Living area : 166 m²
terrasse Terrace : 64 m²
chambres Bedrooms : 5
sdb Bathrooms : 5

PALM BEACH - RARE

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Sale - Apartment - Beausoleil
Top floor

Reference : 9606A - 4 200 000 €
surface Living area : 156 m²
terrasse Terrace : 58 m²
chambres Bedrooms : 4
sdb

At the gates of Monaco, a balcony overlooking the Mediterranean!

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