France
Israeli Property Valuation for French Tax Residents
Last Update - October 2026
Independent Real Estate Appraisal in Israel for French Tax Residents, Property Owners and Their Professional Advisers
Do you own real estate in Israel and are you a French tax resident?
IL APPRAISER provides independent Israeli real estate valuations for property owners in France and for French lawyers, notaires, accountants and tax advisers who need reliable information about an Israeli property.
A valuation may be relevant for French tax reporting, inheritance, capital gains, financial settlements or other professional matters. It may also be useful for completely non-tax matters — such as deciding whether to buy a property, determining realistic rental income, evaluating an urban-renewal proposal or reviewing an Israeli Betterment Levy.
Our role is to establish the value and relevant real-estate characteristics of the Israeli property.
When Might an Israeli Property Valuation Be Relevant?
You may be particularly interested in our service if:
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You are a French tax resident and own real estate in Israel.
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Your Israeli property may form part of your taxable real-estate wealth.
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Your accountant or tax adviser needs a documented property value.
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You are selling, buying or transferring an Israeli property.
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You inherited an Israeli property or need to divide an estate.
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You are involved in a divorce or financial settlement.
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You have been offered an urban-renewal agreement and need an independent assessment.
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You received a Betterment Levy assessment in Israel and want to examine the valuation.
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You want to know the realistic rental value of a property.
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You already have a previous appraisal and need an updated valuation.
French Tax Matters Relevant to Israeli Property
Impôt sur la Fortune Immobilière (IFI)
The Impôt sur la Fortune Immobilière (IFI) is France's annual real-estate wealth tax.
For individuals whose tax residence is in France, the IFI generally applies to taxable real-estate assets located in France and abroad. The relevant threshold is €1.3 million of net taxable real-estate wealth, assessed as of 1 January of the tax year.
Israeli real estate can therefore become relevant to the IFI calculation of a French tax resident, subject to the applicable French rules and the France–Israel tax convention.
The principal IFI rules are contained in Articles 964–983 of the French Code général des impôts (CGI).
The IFI is calculated on net taxable real-estate wealth, meaning that eligible debts may affect the taxable amount.
Why the Valuation Date Matters for IFI
For IFI purposes, real estate is valued at its valeur vénale réelle — its real market value — as of the tax event, which is 1 January of the relevant year.
For example:
IFI 2026 → property value as of 1 January 2026
A valuation prepared in September 2026 does not automatically establish the property's value on 1 January 2026.
The French administration's guidance explains that real estate should be valued according to the price at which the property could normally have been negotiated on the relevant date, taking into account the property's physical, legal and economic characteristics.
For an Israeli property, this means that relevant Israeli market evidence and the property's specific characteristics need to be examined.
How Is an Israeli Property Valued for French IFI?
The French administration allows taxpayers to use its Patrim transaction-search service as an aid to valuation.
Patrim provides access to French property transaction data held by the French tax administration. It is therefore useful for properties covered by its French transaction database, but it does not replace professional Israeli market evidence when the property being valued is located in Israel.
For an Israeli property, our analysis may consider:
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Location and neighbourhood
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Property type and size
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Floor, orientation and access
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Parking, storage and other attached rights
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Physical condition
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Occupancy and rental conditions
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Registered ownership and legal rights
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Planning status
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Building rights
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Restrictions affecting the property
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Comparable Israeli transactions
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Current or historical market conditions
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The required valuation date
French Tax Forms That May Be Relevant
The exact forms depend on the client's circumstances and the purpose of the valuation.
Form 2042-IFI
Déclaration d'impôt sur la fortune immobilière
The principal IFI declaration. The 2026 version is available from the French tax administration.
Form 2042-IFI-COV
Used in certain situations where an IFI taxpayer does not file the ordinary income-tax return.
Form 2047
Déclaration des revenus encaissés à l'étranger
French tax residents who receive foreign-source income may need to report it using Form 2047. The form includes foreign property income.
Form 2042
The general French income-tax return to which relevant foreign-income amounts may be carried over.
Form 2048-IMM
Déclaration de plus-value immobilière
This form can be relevant in cases where a foreign-property capital gain remains subject to French reporting or taxation under the applicable rules.
Form 2705-SD
Déclaration de succession
This is the principal succession declaration form used in France, subject to the applicable exemptions and procedures.
The client’s French tax adviser or notaire should determine which forms actually apply.
French Rules for New Tax Residents
There is an important special rule for people who move their tax residence to France.
Under Article 964 CGI, individuals who were not tax resident in France during the five calendar years preceding the year in which they establish French tax residence are, subject to the statutory conditions, initially subject to IFI only on their French real-estate assets.
This treatment continues through 31 December of the fifth year following the year in which French tax residence was established.
For a French resident who also owns Israeli property, the date on which French tax residence began can therefore be highly relevant.
Foreign Rental Income
Israeli property may generate rental income while its owner is tax resident in France.
French tax residents are generally required to report foreign-source income, and the French tax administration specifically lists income from foreign real estate among the income covered by Form 2047.
A rental-value appraisal is separate from the tax reporting itself.
For example:
You own an apartment in Tel Aviv and are considering renting it out.
You may want to know whether the expected rent is realistic before signing a long-term lease.
IL APPRAISER can assess the property's market rental value based on its location, characteristics, comparable rental evidence and current market conditions.
Your French adviser handles the French tax treatment of the rental income.
Sale of an Israeli Property & Capital Gains
The French tax consequences of selling an Israeli property depend on the taxpayer's circumstances and the applicable tax convention.
The France–Israel Double Taxation Convention, signed on 31 July 1995, contains specific provisions concerning income and capital gains from immovable property.
Under Article 13, gains from the disposal of immovable property are taxable in the state in which the property is located.
For a French resident selling Israeli real estate, the relevant valuation may concern a historical acquisition date, another legally relevant date or the current market value, depending on the matter being handled by the adviser.
Example
A French tax resident purchased an apartment in Jerusalem several years ago and is now selling it.
The French tax adviser asks for an independent assessment of the property's value at a particular historical date.
IL APPRAISER can prepare an Israeli property valuation for that specific date, subject to the available evidence.
The tax adviser determines how the valuation is incorporated into the French and Israeli tax position.
Inheritance & Estate
Israeli real estate may form part of an estate and may need to be valued for succession, estate division or tax purposes.
Under Article 750 ter of the CGI, French inheritance-tax rules can extend to assets located in France and abroad in situations involving a deceased person who was tax resident in France.
Separate rules can also apply where the deceased was not resident in France but the heir has been resident in France for at least six of the previous ten years.
For a succession involving a property, French administrative guidance generally provides for a succession declaration within:
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6 months when the death occurred in France
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12 months when the death occurred abroad
Example
Three heirs inherit an apartment in Netanya.
One heir wants to keep the property while the other two prefer to receive other assets.
An independent Israeli valuation can establish the property's market value as a reference point for the estate division.
The notaire and legal advisers determine the legal division and inheritance-tax consequences.
France–Israel Tax Convention
France and Israel have an income and wealth tax convention in force.
The Convention addresses:
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Income from immovable property
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Capital gains from immovable property
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Wealth
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Double-taxation relief
Article 6 addresses income from immovable property.
Article 13 addresses capital gains.
Article 22 addresses wealth, including immovable property.
Article 23 provides mechanisms for eliminating double taxation.
The Convention was signed in Jerusalem on 31 July 1995 and entered into force on 18 July 1996. It has subsequently been affected by the multilateral convention implementing treaty-related measures.
The application of the Convention depends on the taxpayer's specific circumstances and should be assessed by the relevant tax adviser.
2026 Filing, Payment & Appeal Dates
The exact deadline applicable to an individual should always be checked against the current notice and the French tax administration's calendar.
IFI claims and appeals
For IFI, the general reclamation period normally expires on 31 December of the second year following the year in which the tax was placed for collection.
For an IFI assessment placed for collection in 2026, the general deadline is therefore 31 December 2028.
Special rules may apply following a tax audit or rectification procedure.
IFI 2026
The exact deadline applicable to an individual should always be checked against the current notice and the French tax administration's calendar.
2026 Legislative Update
The Loi de finances pour 2026 — Law No. 2026-103 of 19 February 2026 introduced a new tax relating to certain non-operational assets held by qualifying patrimonial holding companies.
The new taxe sur les actifs non affectés à une activité opérationnelle des sociétés holdings patrimoniales applies to relevant financial years closing from 31 December 2026.
Article 7 also amended Article 975 of the CGI so that assets subject to this new tax can be excluded from the IFI base under the specified conditions.
This can become relevant where Israeli real estate is held directly or indirectly through a company or holding structure.
The client's French tax adviser should determine whether this regime applies.
Beyond Tax Reporting — How We Can Help
An Israeli property valuation is not only used for taxation purposes.
You Are Considering Buying a Property
Before committing to a purchase, we can provide an independent reference point for market value.
This can help you compare:
Asking Price vs. Market Value
and identify questions that may require further legal, planning or financial review.
You Own a Property and Want to Know the Rental Value
We can assess the property's market rental value.
This may be useful when:
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Considering a new rental
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Reviewing an existing lease
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Comparing rental alternatives
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Planning a purchase for investment
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Reviewing an investment property
You Received an Urban Renewal Proposal
If you have been approached regarding urban renewal / Pinui-Binui / TAMA 38, you may need to understand whether the proposed consideration is reasonable.
We can examine, as appropriate:
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Existing apartment value
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Proposed consideration
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Size and characteristics of the replacement apartment
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Parking and storage
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Floor and location
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Other economic components of the offer
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Market rent during the evacuation period
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Existing appraisal or Standard 21 material
The Government Authority for Urban Renewal recommends that apartment owners examine developer proposals and their economic value before signing an agreement.
You Received a Betterment Levy Assessment
The Israeli Betterment Levy ("Heitel Hashbaha") is connected to an increase in land value arising from planning changes such as approval of a plan, a relief or permitted exceptional use.
The statutory framework is contained in the Planning and Building Law, 1965, including its Third Schedule.
If you have received a Betterment Levy assessment, we can review the valuation basis and the property circumstances and try to find whether professional valuation grounds that may support challenging or reducing the assessed amount.
The outcome depends on the facts, planning position and applicable legal procedure.
What Does IL APPRAISER Provide?
Depending on the assignment, per vakuation required date, the appraisal may address:
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Property identification
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Location and surroundings
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Physical characteristics
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Registered rights
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Planning status
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Building rights (present and/or potential)
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Existing leases or occupancy
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Comparable transactions
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Rental evidence
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Market conditions
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Valuation methodology
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Market value
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Market rental value
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Relevant historical valuation date
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Supporting analysis
Where your French professional adviser requires a particular format, supporting documentation or language arrangement, this can be discussed before the engagement begins.
Need an Updated Valuation for the Same Property?
Updating an Existing Israeli Property Valuation
If you previously commissioned an appraisal of the same Israeli property, we can review the existing file and, where appropriate, prepare an updated valuation for a new valuation date.
This can be particularly useful when:
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The same property is relevant to a later IFI year
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A property is being sold after several years
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An estate matter has developed
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A previous valuation is no longer current
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A lawyer or accountant needs an updated professional reference point
A previous appraisal is useful background information but does not automatically establish the property's current market value.
A Simple Remote Process
1. Tell Us About the Property
Send us the property's location and explain what you need.
2. We Review the Matter
We determine the appropriate appraisal scope, valuation date and information required.
3. The Appraisal Is Prepared in Israel
Our licensed Israeli appraisers conduct the relevant property and market research.
4. Receive the Report
The completed appraisal can be delivered to you or coordinated directly with your French lawyer, notaire, accountant or tax adviser.
For French Lawyers, Notaires, Accountants & Tax Advisers
Have a client who owns property in Israel?
You can refer the client directly to us or coordinate the assignment with us on the client's behalf.
We can assist with:
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IFI-related valuations
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Historical valuations
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Capital gains matters
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Estate and inheritance matters
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Divorce and financial settlements
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Property sales and acquisitions
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Rental-value assessments
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Urban renewal
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Betterment Levy matters
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Multiple Israeli properties
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Updates of previous appraisals
You handle the French legal and tax matter.
We provide the Israeli property valuation.
Why IL APPRAISER?
Israeli Licensed Appraisers
Independent real estate appraisal carried out in Israel.
Israeli Market Evidence
Our analysis is based on the Israeli property, planning and market environment rather than foreign transaction databases alone.
Defined Valuation Date
We identify the relevant date and assess the property as of that date.
Remote Process
The assignment can be coordinated from France or elsewhere without the property owner having to manage the process personally in Israel.
Professional Coordination
We can work directly with the client's lawyer, notaire, accountant or tax adviser.
Valuation Updates
Where appropriate, an existing valuation can be reviewed and updated for a subsequent valuation date.
Frequently Asked Questions
Do French tax residents automatically need an Israeli professional appraisal for IFI?
No. French taxpayers are responsible for determining the value of their taxable real-estate assets, but the law does not establish a universal requirement that every Israeli property be professionally appraised every year.
The client's French tax adviser should determine whether an independent appraisal is appropriate.
What is the relevant date for IFI?
For IFI, the relevant valuation date is 1 January of the tax year.
For example:
IFI 2026 → Market value as of 1 January 2026.
Does the IFI include Israeli property?
For a French tax resident, taxable real-estate assets can include property located outside France, subject to the applicable rules and tax conventions.
Can you prepare a historical valuation?
Yes. We can prepare a valuation for a specified previous date, subject to the available market and property evidence.
Can you assess the rent I could receive for my Israeli property?
Yes. We can provide a market rental-value assessment based on the property's characteristics and relevant Israeli rental evidence.
Can you review an urban-renewal offer?
Yes. We can review the proposed consideration and relevant property and market information from the owners' perspective.
Can you help with a Betterment Levy?
Yes. We can review the underlying valuation and determine whether there are professional valuation issues that may support an objection, appeal or other procedure. The applicable legal procedure should be handled with the client's legal adviser.
Can you work directly with my French accountant, notaire or lawyer?
Yes. We can coordinate directly with professional advisers according to your preference.
Can you update a previous Israeli appraisal?
Yes. We can review the previous valuation and, where appropriate, prepare an updated appraisal for a new valuation date.
Need an Israeli Property Valuation?
Whether the matter concerns French tax reporting, an inheritance, a sale, a rental decision, an urban-renewal proposal, a Betterment Levy or another property matter, we can review the case and determine the appropriate appraisal scope.
Important Notice
This page provides general professional information about Israeli property valuation for French tax residents. It does not constitute French, Israeli or international tax, legal or financial advice.
French and Israeli tax rules, reporting requirements, procedures and deadlines may change and may depend on the taxpayer's individual circumstances.
The client's French and/or Israeli tax or legal adviser should determine the applicable tax treatment, reporting requirements and legal procedure.
IL APPRAISER provides independent Israeli real estate valuation services.
