Is your life insurance subject to the IFI, the tax that replaced the ISF?– Get a quote in minutes

Life insurance contract during the savings phase

Non-redeemable contracts (i.e. where savings are not available) are not taken into account in the declaration for the tax on real estate wealth (IFI).

The surrender value of life insurance contracts and capitalization contracts falls within the scope of the IFI up to the representative value of the units of account made up of the real estate assets described below and taxable at the IFI (article 972 of the CGI).

In addition to this, you need to know more about it.

Life insurance contract in restitution phase (annuity)

At the end of the contract, in principle, the capital paid in cash or the annuity that the beneficiary receives is not subject to the property tax (IFI), insofar as they do not constitute taxable assets. within the meaning of article 965 of the General Tax Code.

Who is subject to the IFI (tax on real estate wealth)?

The following are subject to this tax (article 964 of the CGI):

  • Individuals having their tax domicile in France, by reason of their assets mentioned in the new article 965 of the same Code located in France or outside France when the value of these assets is greater than € 1,300,000 on January 1 of the year taxation.
  • Individuals who do not have their tax domicile in France, on account of their assets mentioned in the new article 965 of the same Code located in France when the value of these assets is greater than € 1,300,000 on January 1 of the year d 'taxation.

Like the ISF, married couples, PACS partners and people living in notorious cohabitation are subject to joint taxation at the IFI.

What is the basis of the IFI?

The basis of the IFI is made up (Article 965 of the CGI) by the net worth on January 1 of the tax year:

– all property and real estate rights belonging to the taxpayer as well as to his minor children, when he has the legal administration of their property;

– units or shares of companies and organizations established in France or outside France belonging to the taxpayer as well as to his minor children, when he has the legal administration of their property, up to the fraction of their value representative of real estate property or rights held directly or indirectly by the company or organization.

However, are not used in particular for determining the basis of the IFI :

  • holdings (direct or indirect) of less than 10% of the capital and voting rights of operational companies (company or organization having an industrial, commercial, craft, agricultural or liberal activity);
  • units or shares of UCITS, general purpose investment funds, private equity funds, alternative funds of funds, general purpose professional funds, declared funds and employee savings funds (with some exceptions) , investment companies with fixed capital and securitization undertakings under conditions that:
    • the tax household in question holds less than 10% of the rights of the fund or organization;
    • and that the assets of the fund or organization are made up directly or indirectly up to less than 20% of real estate property or rights falling within the scope of the IFI.
  • holdings (direct or indirect) of less than 5% of the capital and voting rights of Listed Real Estate Investment Companies (SIICs).

What is the IFI scale?

Progressive scale applied to the taxable base:

  • 0.5% for the net asset value between € 800,001 and € 1,300,000
  • 0.70% for the net asset value between € 1,300,001 and € 2,570,000
  • 1% for the net asset value between € 2,570,001 and € 5,000,000
  • 1.25% for the net asset value between € 5,000,001 and € 10,000,000
  • 1.5% for the net asset value greater than € 10,000,000

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