Since January 1, 2018, the solidarity tax on wealth (ISF) has been abolished and a new tax, the tax on real estate wealth (IFI) has been created. Here are the new rules that apply.
Who is affected by the tax on real estate wealth?
The IFI applies to anyone with net property assets more than €1.3 million.
What are the taxable assets?
Taxable properties include.
- houses, apartments and their outbuildings ;
- listed buildings;
- buildings under construction on January 1, 2018;
- non-built property such as building land, agricultural land, etc. ;
- buildings or parts of buildings held indirectly via company shares;
- property and real estate rights that do not qualify as business assets.
Certain assets are exempt, such as business property, woods and forests, rural property leased under long-term leases, etc
What are deductible liabilities?
- debts existing on January 1 of the tax year and relating to the acquisition of the property, repairs, maintenance, improvements, construction, reconstruction, or enlargement.
- Tax debts relating to taxable assets
- bank loans and debts
What is the real estate welth tax rate?
FRACTION OF TAXABLE NET ASSET VALUE Tax rate
up to €800,000 0 %
between 800,000 and 1,300,000 € (inclusive) 0,5 %
between €1,300,000 and €2,570,000 (inclusive) 0,7 %
between €2,570,000 and €5,000,000 (inclusive) 1 %
between €5,000,000 and €10,000,000 (inclusive) 1,25 %
above €10,000,000 1,5 %
