The IFI, which replaced the ISF in 2018, generated much more revenue than the 1.5 billion euros that had been provided for in the initial finance law. This figure can be explained in particular by the real estate boom, which has brought more than 7,000 new taxpayers into this tax.

Gérald Darmanin, the Minister of Public Accounts, explained that Paris was the city where we found the most indebted to the IFI, ahead of Neuilly-sur-Seine and Lyon.

The successor of the ISF brings in more money than expected. The real estate wealth tax (IFI) brought into the State coffers 2.1 billion euros in 2019. This is significantly higher than the initial forecast of 1.5 billion which had been made at the fall 2018, during the preparation of the Finance bill for 2019. The announcement was made on Tuesday by Gérald Darmanin, the Minister of Action and Public Accounts, who was heard by the Finance Committee of the Assembly to present the figures for the budgetary execution of the State accounts for last year.

It has been several times that the government has revised upwards the figures of this IFI, which took over from the famous wealth tax (ISF) in 2018. Initially, the executive had forecast for this first year for revenue from the ‘around 850 million euros, but they had in fact amounted to 1.3 billion (1.9 billion taking into account the remainders of the old wealth tax and the sums reported by the tax audit). In 2019, they therefore stood at 2.1 billion euros, which means that the forecast made for 2020 (1.9 billion) should undoubtedly be revised upwards.

Real estate boom

Why such inflation, in just two years of existence? It appears that Bercy had initially made cautious forecasts, for lack of data on the real estate assets of large fortunes. Moreover, it has not escaped anyone’s notice that real estate has risen sharply in recent years, which automatically pushes up the revenue figure of the IFI.

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This real estate boom has also visibly contributed to bringing new taxpayers into this tax. Thus the number of households concerned rose from 132,722 in 2018, to 139,149 households in 2019. In comparison, the ISF affected nearly 360,000 households.

It is logically in Paris that we find the most taxpayers at this IFI (nearly 37,000, for a total amount of 455 million according to Gérald Darmanin), especially in its most affluent arrondissements (16th, 7th, 17th and 15th centuries) . Next in this IFI list are the cities of Neuilly-sur-Seine, Lyon, Boulogne-Billancourt and then Bordeaux.

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