stylistic:tone
France

In France, the property tax is a local tax payable by all owners of real estate located in France. This tax is used to finance the budget of local authorities.The property tax comprises three different taxes: the tax on built properties, the tax on unbuilt properties, and a tax on household waste removal.

Taxe d'Habitation is a local tax that must be paid by either the owner of a French property or the long-term tenant who is occupying it on January 1 of the tax year. The responsibility for payment depends on whether the property is rented furnished or unfurnished, and whether the rental is long-term or short-term.

If the property is rented unfurnished or furnished on a long-term basis, the tenant is responsible for paying the tax. However, if the property is rented out on a short-term basis, the owner is responsible for paying the tax. For leaseback properties, the management company that sub-lets the property is responsible for payment.

In summary, if you let out a property on an annual basis, the tenant is responsible for paying the Taxe d'Habitation, regardless of whether the property is furnished or unfurnished. This tax is based on various factors specific to the property, such as its location, and is determined by the local municipality, which means the amount of the tax can vary considerably.

Property tax on built properties

This is the most common tax in France. It is detailed in Article 1380 of the General Tax Code. Since it is a local tax, the property tax of built properties has a census role. The tax authorities count the new owners every year.Two conditions must be met to be subject to this tax: The property must be irremovable and must fall into the category of real buildings.

This tax therefore applies to the following goods:

Property tax on non-built properties

This tax concerns land that is not used for residential purposes.

It applies to the following goods:

Responsible for property tax

The owner, not tenant, of the property must pay the tax. The owner liable for property tax can be an individual, company or legal entity (commercial company or real estate company). The tax is due each year from taxpayers who own property on 1 January of the tax year. If the property is sold during the year, the seller can ask for the tax to be shared with the buyer.

Specific situations:

Calculation of property tax and payment

The calculation of the property tax is based on three components:

The amount of property tax is equal to the tax base x the tax rate voted by the municipality.

The tax base is equal to 50% of the cadastral rental value of the property (For non-built properties, this tax base is equal to 80%). To this base is then applied the revaluation coefficient. (It stood at 1.012 for 2020).

The payment of the property tax is usually made before mid-October. The tax notice is drawn up in the name of the owner who is the only person liable for the property tax. The precise deadline for paying it varies depending on the method of payment chosen.

Exemption from property tax

In certain situations the property tax allows exemptions. The conditions of this exemption may depend on the property or the situation of the owner.

Certain properties are permanently exempt:

There are also exemptions for unbuilt properties. For example, land sown, planted or replanted with wood can be 100% exempt for a period ranging from 10 to 50 years depending on the plantations.

In 1999, France introduced a tax on vacant properties. It reduced the vacancy rate by 13%.