Is French wealth tax when leaving France pro-rata?

Reader Question: I plan to leave France late in 2024 and my wife in January or February after she has sold our house. How would IFI (impôt sur la fortune immobilière) property wealth tax work in that case? Would there be a pro-rata reimbursement for 2025 as we will not be living in France for long? N.B.

IFI for 2025 will be calculated based on household property-related wealth on January 1, 2025. It is possible for members of a couple to form part of a tax household, but for one to be non-resident and the other resident, for tax purposes.

For non-residents, only French property and related assets (such as shares in a SCI) are assessable for this tax, so if you move to another country before January 1 and it is clear that this is a permanent move any non-French property assets you may have, or your share in them, should be exempt.

Any shares in property assets owned by your wife worldwide would be assessable.

This may result in a saving, depending on whether you own property assets outside France, however, only your wife’s share in the house would benefit from the 30% reduction that is available for the main home.

There would be no reduction related to the fact that neither of you will be resident for most of 2025.

Tax lawyer Laurent Gravelle, from Sophia Antipolis, said in this situation there is a risk of the French authorities assuming you both to have left in December or January/February, and you must, if you want this not to happen, take great care over the rules on tax residency and ensure everything is made as clear as possible.