French deputies adopted an amendment on Friday evening modifying the real estate wealth tax (IFI) to transform it into an 'unproductive wealth tax' during the review of the 2026 finance bill. Carried by Jean-Paul Mattei (MoDem) and sub-amended by Philippe Brun (PS), the text received 163 votes against 150, thanks to an alliance between PS, RN, and MoDem. This measure marks a partial return to the principle of the former wealth tax, abolished in 2018.
Amendment No. I-3379, presented by MoDem deputy Jean-Paul Mattei from Pyrénées-Atlantiques, aims to deeply reform the IFI, introduced in 2018 to replace the wealth tax (ISF). The IFI currently taxes the net value of real estate assets exceeding 1.3 million euros, excluding financial investments. The new system broadens the base to so-called 'unproductive' wealth, potentially including assets like jewelry, savings accounts, or artworks, while protecting professional assets, investments in SMEs, and granting a one-million-euro abatement on the main residence.
The vote, held on Friday, October 31, 2025, at the National Assembly, revealed an unexpected coalition: 163 favorable votes, mainly from socialists, Rassemblement National (RN), and MoDem, against 150 from La France Insoumise (LFI) and the presidential Renaissance camp. 'A new ISF has been adopted,' rejoiced PS first secretary Olivier Faure on X. RN deputy Jean-Philippe Tanguy hailed it as a 'great victory' for tax justice, protecting the productive economy and family real estate, a concept inspired by Marine Le Pen.
Marc Fesneau, MoDem group president, defended the amendment as a balanced compromise, distinguishing taxation between growth-useful assets and rents: 'The unproductive wealth tax is neither the former one [ISF] nor the RN's [tax]. It's the unproductive wealth tax.' This idea, which he proposed in September to Les Échos, could yield nearly 4 billion euros annually according to MoDem, though the exact return remains unclear.
Criticism abounds: economist Olivier Babeau tweeted 'This assembly is a ship of fools,' and Economy Minister Roland Lescure denounced 'fiscal sorcery' for these inoperative measures, including this one, which raises compulsory levies to 45.1% of GDP. Bruno Retailleau calls it 'fiscal madness.' The text, adjusted to reduce the rate by a third for the very wealthy, would mainly penalize 'small millionaires,' without a grand fiscal overhaul.
