Local property taxes in France: taxe foncière and taxe d’habitation


Here in France, it is the time of year when French property taxes are due. If you own a property in France, then you will have one or two local property taxes to pay each year.

Taxe foncière is a land tax, and is paid by the owner of the property.

Taxe d’habitation is a residence tax. You have to pay this tax if you own a property and live in it yourself (or have it available for your use, or rent it out on short-term lets). Where properties are rented out long-term, the tenant pays.

Both taxes apply to non-residents as well as residents, and are often higher on second homes than on main residences due to possible discounts on the main home.

Demands for both taxes are sent annually, the bills or avis d’impôt start going out in September each year. The amount must be paid by a specified date, usually in October (Taxe foncière) and November (Taxe d’habitation) but varies from place to place. Failure to pay on time incurs a 10% penalty.

Payments can be made by cheque, interbank payments, bank transfers or online. There is more time to pay online, the deadline is usually extended a few weeks later than for the paper version.

Taxe foncière

Taxe foncière tax is paid by the owner of the property, irrespective of who occupies it. The tax is divided into two parts: tax on buildings (taxe foncière sur les propriétés bấties) and tax on land (taxe foncière sur les propriétés non bâties). The latter is no longer levied locally and is levied nationally instead. The tax on buildings is paid on any property that is habitable, whether or not it is occupied.

If you sell a property part-way through the year the tax is apportioned by the notary dealing with the sale.

An exemption is available against the main home if the occupant is 75 or over (or in receipt of certain disability or old age allowances) as at 1st January of the relevant year, based on the level of taxable income in the previous year. The calculation, which also applies to the exemption for taxe d’habitation, depends on the number of “family quotient” (quotient familial) units available.

For the 2015 taxe foncière, the maximum income levels based on 2014 income is €10 686 for the first family quotient unit (so this is the limit for a single person), and then €2,853 for all extra half units.

Where the taxpayer is aged between 65 and 75 at 1st January and their taxable income falls below the above limits, a flat €100 discount is available against the taxe foncière payable on their main home (unless they share the house with anyone other than a spouse or dependant).

Exemptions and reliefs are available on land used for certain purposes such as farming.

New buildings and renovated properties used as the main home are exempt from taxe foncière for the first two years after construction. Renovated properties can benefit provided that reconstruction or additional construction work has been carried out, and is determined according to the nature and size of the work. A special Tax Form (H1 or IL) must be filed with the local tax authorities within 90 days of completion of the property or renovation works.

With thanks to Sylvia Davis for this post: Editor, Property & Living, FrenchEntree




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