Donate IFI

All natural persons with net real estate assets of more than EUR 1.3 million on 1 January must make an IFI declaration.

The IFI return takes into account the immovable property held by all persons in the tax household (for example, spouses and dependent children).

The IFI tax household is composed of one of the following two ways:

• A person living alone, whether single, widowed, divorced or separated
• Two persons living in a couple (marriage, partnership or common-law partnership)

In all cases, the assets of minor children are taken into account when calculating the IFI amount of the parents or their legal administrator. For adult children, the IFI tax shelter may be different from the Income Tax shelter. Children who have reached the age of majority and whose net taxable assets exceed EUR 1.3 million may be attached to their parents’ tax home for their tax return. However, they will have to declare their IFIs independently.

If the tax household reports taxable net real estate assets of more than 1.3 million euros on 1 January, the persons making up the tax household are then liable to tax on the capital property. As a declaratory tax, taxable persons must file an IFI declaration in their own name via Annex 2042-IFI.

If the IFI trigger point is EUR 1.3 million, the scale applies from the point in time between EUR 800 000 and EUR 1.3 million of net assets.

The value taken into account in the IFI calculation is the taxable net value, i.e. the value of the property minus the related debts.

You are liable for the IFI if your taxable net assets exceed the tax threshold of €1.3 million. Your IFI will then be calculated according to the following graduated scale:

Taxable net wealth rate:

• between 0 and 800,000 €: 0%
• between €800,000 and €1,300,000: 0.5%
• between € 1 300 000 and € 2 570 000: 0.7%
• between € 2 570 000 and € 5 000 000: 1%
• between € 5 000 000 and € 10 000 000: 1.25%
• over €10,000,000: 1.5%

Important: the IFI tax threshold corresponds to a taxable net worth of €1.3 million. However, when you are taxable at the IFI, the calculation starts at €800,000. Prior to this amount, the applicable tax rate is zero.

For taxable net assets between € 1 300 000 and € 1 400 000, a tax-mitigating haircut system is applied. The amount of this reduction is € 17 500– (1.25 x the amount of net taxable assets).

No matter how much you own, you can reduce your IFI by making a donation to Paris Brain Institute. 75% of your donation will be deducted within the overall annual limit of 50,000€.

This reduction in your IFI applies to payments made before your income tax return is due.

In reporting its IFI, several elements need to be taken into account. The IFI is a declaratory tax. The persons liable must make an estimate of their assets each year.

Only natural persons with real estate whose net taxable value is strictly above the tax threshold of 1,300,000 € on 1 January are required to make their IFI declaration. The IFI’s reporting requirements are the same for all debtors.

If you are a French resident (or have a tax obligation in France), you will be able to declare your IFI online at the same time as your income by checking the box dedicated in the tax return form.

Important: since 2019, online filing is mandatory for all taxpayers whose principal residence is equipped with Internet access, regardless of their benchmark tax income.

If you do not have access to the Internet, you are not subject to this obligation and can declare your IFI using the paper form. If you declared your IFI in the previous year, you will receive a Form 2042-IFI at home. You will then have to return your paper return to your managing department.

Your IFI return is due at the same time and within the same time as your income tax return. All persons whose home is connected to the Internet must make their declaration online.

Find out the tax return dates here.

In order to benefit from a tax deduction of 75% of the amount of your donation within the limit of 50,000 euros deducted, your donations must reach Paris Brain Institute before the deadline for filing the income tax return usually between May and June of each year.

Paris Brain Institute will send you a tax receipt indicating the amount of your donation. You can declare your donation before you receive the tax receipt.

A simple way to reduce your IFI is to take advantage of the tax deduction that applies to donations made to charitable foundations such as Paris Brain Institute. Any natural person who is liable to pay the IFI is eligible for this tax deduction. 75% of the amount of your donation will be deducted from your IFI within the limit of 50 000€ (i.e. a maximum donation of 66 667€).

The only condition to benefit from this tax deduction on your IFI is to make your donation before the date of your IFI declaration. Find the reporting dates for your field here.

To minimise your IFI, your donation can be up to €66,670 (€66,670/€0.75 = €50,000). In fact, an IFI grant entitles to a 75% reduction up to a maximum of €50,000.

For example, if your IFI is €3,000, a donation of €4,000 to Paris Brain Institute allows you to reduce your IFI to zero. Finally, your IFI grant only comes back to you at € 1,000 after tax reduction.

By donating IFI to Paris Brain Institute, you help researchers fight neurological and psychiatric diseases, and you reduce your tax burden.

Paris Brain Institute provides you with a calculator that allows you to determine the amount of your gift and your tax benefit based on the amount of your tax.

If the amount of your IFI reduction exceeds the amount of your IFI or the €50,000 limit, the excess cannot be carried forward. Our advice: declare part of your IFI donation (up to €66,667) and the remaining income tax.

If you are not liable for taxes on real estate, you can still support Paris Brain Institute with a donation deductible from income tax (deduction up to 66% of the amount of the donation, up to a limit of 20% of your net taxable income, which corresponds to a donation ceiling of 10,000 euros for a net taxable income of 50,000 euros). If your donation exceeds this threshold, you have the option of deferring the excess for 5 years.

The IFI replaced the ISF in 2018. The main difference between the ISF (Tax on Capital) and the IFI (Tax on Capital Property) is their base. The ISF was based on all assets of tax households (furniture and real estate) whereas the IFI is limited to non-professional real estate. This includes land, property (whether built or under construction, and their outbuildings) and buildings classified as historic monuments. Shares held with real estate investment companies and life insurance units affiliated to real estate are also included in the IFI calculation.

Income tax, housing tax or interest on credits other than real estate are not deductible from the IFI.

On the other hand, donations to public benefit foundations such as the Paris Brain Institute qualify for a tax deduction linked to the IFI. In fact, 75% of the amount of your donation up to the limit of 50,000 euros will be deducted from your IFI.