DA-Tax
Local Taxes
This article is for general information only. You should not act or refrain from acting in reliance of it. You should always obtain professional advice on the facts of your particular case. Nothing in this article constitutes financial advice. The owner of this site accepts no liability.
French local property taxes
If you own a property in France, you will be subject to local taxes including but not limited to housing tax and property tax.
1- Property tax (taxe foncière)
Am I liable for property tax?
The property tax is levied if you own a French property as of 1 January each year, whether you occupy it or not.
How much will I pay for property tax?
The tax base is revaluated each year and is based on the theoretical rental value of your property (valeur locative cadastrale), indexed by annual inflation. A complete revaluation isdue by 2026 so the tax base may change significantly.
Then 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 increase in the tax rate from 13.5% in 2022 to 20.5% in 2023.
Can I qualify for exemptions or reliefs?
New build exemption
You can claim an exemption from property tax in the first two years of the construction – whether it is your main residence or not. This also applies to redevelopment and new additions.
Energy-efficient property relief
Certain municipalities offer a 50% or a total relief for three years work is done to improve energy efficiency of properties constructed before 1989.
Exemptions are also available for certain categories of people with low income.
2- Residence/occupancy tax (taxe d’habitation)
Am I liable for residence tax?
The housing tax is levied if you are occupying a French property as of 1 January each year, even though it is not your main residence. You are liable to this tax when you are the tenant or legal occupier of the dwellings.
If nobody occupies the property, the housing tax is not due. 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 will I pay for residence tax?
The tax base is the same as for property tax. The 50% reduction of the tax base does not apply.
The tax rate varies according to each municipality.
Can I qualify for exemptions or reliefs?
The residence tax is currently phasing out for main residences and will disappear in 2023.
It is maintained for secondary homes, though.
A surcharge - up to 60% - can also apply in certain municipalities located in built up areas. It is the case in French big cities such as Paris, Lyon, Marseilles, Bordeaux.
Other exemptions may be available – do not hesitate to contact us if you would like to learn more about exemptions and reliefs.
If the combined properties you own in France are worth more than €1.3M, you may also be liable to the French property wealth tax IFI (click here for more information).
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