Tax Foncieres & Habitation for property in France
Originally posted on & updated on 14th November, 2023
Here are a few Q and A’s to learn about Taxes Foncieres and Habitation for property and real estate in France. If you own, rent or have the right to occupy a property in France, you are likely to be subject to local taxes including, but not limited to, housing (habitation) tax and property tax (foncieres). We’ve recently updated this article to include the tax notice schedule and payment deadline for 2023.
Property Tax in France (Foncière)
Am I liable for property tax?
The property tax is levied if you own a French property as of 1st of January each year, whether you occupy it or not.
How much tax will I have to pay?
The tax base is re-valuated each year and is based on the theoretical rental value of your property (valeur locative cadastrale), indexed on annual inflation. A complete re-valuation is due by 2026 so the tax base of your property may change significantly. A 50% discount is applied to the tax base to take into consideration maintenance expenses such as insurance, repairs, management, etc.
The tax rate varies according to each municipality. Paris will notably be subject to an extraordinary rise of the tax rate from 13.5% in 2022 to 20.5% in 2023. The tax is due for payment in October each year.
Do I qualify for exemptions or relief?
• New build exemption - A full or partial relief is available in the first two years of the construction.
• Energy-efficient property relief - a 50% or 100% relief is available for up to five years for properties meeting energy efficiency requirements. Relief may also be available for properties undergoing energy efficiency improvement.
Relief and exemptions may also be available to those over certain ages, students, or those with disabilities. These exemptions are for low-income earners only.
Residence/Occupancy Tax (Habitation)
Am I liable for residence tax?
Since the 2018 reform, the residence tax is being progressively phased out for main residences. From 2023, the residence tax only applies to second homes. You are liable to this tax when you own, rent or have the right to occupy the property at any time.
The housing tax is not applicable to unoccupied properties. However, in certain municipalities, a tax is levied on properties that have not been occupied for more than a year (taxe sur les logements vacants or taxe d’habitation sur les logements vacants).
How much residence tax will I pay?
The tax base is the same as for property tax, although the 50% reduction of the tax base does not apply. The tax rate varies according to each municipality and the tax is due for payment in October each year at the same time of the property tax.
When is the tax payment deadline for 2023?
Even though the tax d’habitation on the main residence was abolished on January 1st, 2023, it is maintained on second and holiday homes.
The taxe d’habitation on second homes is collected for the benefit of local authorities. Its amount varies from one municipality to another and also depends on the characteristics of the property. It applies to furnished premises and outbuildings, including garages. No reduction can be applied.
Notices of imposition of this tax are sent each year in November, for 2023 :
If you are already registered online with the local authorities, they are available in your member area on the impots.gouv.fr website from November 7th if you pay annually and from November 20th if you pay monthly. Otherwsie paper notices will be sent between November 8 and 29 depending on whether you pay monthly or annually.
In any case, it’s important to look out for these official documents, especially if you are not planning to return until next year. The payment deadline is December 15th, 2023, don’t miss it.
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