Are cohabiting partners jointly subject to MFI?

Question for an expert

We live together, do we have to declare joint real estate?

Immovable property tax (IFI) is payable by individuals if the net real estate assets of their tax household exceed 1.3 million euros on 1^ahem January of the tax year.

The term tax household is understood differently depending on the tax in question. For MFIs, married couples or couples in a registered partnership, regardless of their marital status, must file a joint declaration containing the assets of their minor children. IFI declaration procedures may be less obvious for cohabiting partners.

Article 964 of the General Tax Code stipulates that persons living in a known cohabitation are also subject to joint taxation – even if they report their income separately.

A stable and continuous life together

This term is defined as “a de facto union characterized by a common life that has the character of stability and continuity, between two people of different or the same sex who live as a couple” (§ 515-8 of the Civil Code).

If taxpayers fall within this definition, the base of the IFI is the net worth as at 1^ahem January of the tax year of all taxable assets belonging to each of the cohabiting partners and their minor children. This inheritance includes not only immovable assets and rights held directly, but also shares or shares in companies that hold real estate for a representative part of them.

However, if the cohabitant is also married to a third party, they continue to be subject to joint IFI taxation with their legal spouse and their property must then be attached to their legal household.