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Some things you need to know about property taxes once you have
bought your property in France.
Please note that, as with all the content on this website, information
on this page is for your general guidance only. We feel it is essential
that you seek recognised professional advice when dealing with such
matters as taxation.
There are two taxes that will affect you when you have bought your
French property. These are Taxe Foncière (payable by the
owner) and Taxe d'Habitation (payable by the occupier).
Both Taxe Foncière and Taxe d'Habitation are
calculated using the rental value of the property as a base figure.
Hence taxes on property in towns and cities is much higher than
that on properties in small villages. Both are calculated for the
year commencing 1st January.
It is impossible for us to generalise on how much these taxes will
come to and impossible for all but the French taxman to actually
calculate by use of a formula. There are just too many variables.
When buying a property, even if it happens to be 2nd January, both
these taxes will have been paid by the previous owner. It is normal
practice for the Notaire to deduct the proportion of these annual
taxes that you will become liable for, from the amount the owner
has paid the taxman.
This equates to the old Rates system in the UK and is made up of
two parts; taxe foncière bâtie and taxe foncière
non-bâtie. These are the different rates which apply to
the buildings and to the land that make up your French property.
Please note that new buildings, additions to existing buildings
or rural conversions and renovations are granted full exemption
from the tax, whilst the work takes place.
Taxe d’habitation is payable by the occupier of the property
on 1st January and may include a portion for refuse collection (ordures).
It also includes your TV licence la redevance audiovisuelle.
If the property is your second home, even though you may not physically
be resident on 1st Jan, the tax is still payable, provided the property
is capable of occupation.
If you let your property on an annual basis, the tax is payable
by the tenant.
The tax is levied by the local and county councils and is one of
the main local taxes used to fund local services. Mind you, it is
collected centrally by the Impôts and then redistributed.
If your property is situated in a tourist area, there may be additional
tax included in the taxe d’habitation charge for maintaining
the area to a higher than normal standard. Also, if there is an
exceptional expense, such as improving the sewage system, then there
may be a separate one-off bill.
By definition, the tax is not payable if the property is not occupied.
However, the definition of 'occupation' used by the tax authority
includes those properties 'capable' of occupation. For instance,
this would imply that there would need to be furniture in the property
and that utility services were also available.
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