Property Taxes in France — FACT FILE
So you are about to purchase that ideal property – If you require finance or don’t you still have to take into account the payment of property taxes. In France the tax system is centralised, however the location of the property will ultimately determine how much you pay.
First of all you have to pay the“notaire’s” fee. Most of this in fact goes to the government like Stamp Duty in the UK. This will work out around 6% to 8% of the purchase price. There is also a small land registry tax to pay.
The property sale is now complete. You have the“Taxe D’Habitation” which is a local tax. The amount you will pay is determined from the cadastral value of the property. This is based on the size and location –not market value. It is generally thought to be reasonable particularly in rural areas. It should be noted that if you let your property as a holiday let and go there a few times a year you still pay the“Taxe D’Habitation”, but in many areas you will also have to collect a“Taxe de Séjour” from your “paying guests”. The authorities see it as you are making money from renting out the property then so you should pay them some revenue as well. This might only be a few cents per person per day, but it still has to be paid and it will depend on your local town hall. (See also our Fact File on Taxe de séjour CLICK HERE )
The “Taxe foncière” is also paid annually. This generally quite low. There is also a wealth tax “Impột de solidarité sur la fortune” that is paid by owners of property worth in excess of €732,000.
Inheritance tax:“Impột sur les successions” this usually has to be paid when the owner dies or one of them.
You are also expected to pay tax on any rental income and although France has tax treaties with many countries including the UK it is worthwhile employing an accountant to help you manoeuvre through the French tax minefield.
The above information is given without responsibility of accuracy. ©jml Property Services 09/05
How did the South of France look in the 1920s and 1960s? Click Here for photos
French Government plans to tax holiday home owners — June 2011
Sarkozy's plan to tax holiday homes alarms 'les rosbifs' By John Lichfield in Paris
Apparently this tax, due to take effect in January 2012, will apply to second homes owned by non-residents, whether they are French or foreign!
Up to 360,000 homes could be affected, about half of which are thought to be owned by British nationals.
Under the new law, the taxman would charge 20 per cent of the theoretical annual "rental value" of a second home, whether it is rented out or not. Homes rented out full-time will be exempt, since their owners are already assumed to pay sufficient French tax.
Holiday home owners currently pay domestic property taxes — Taxe d'habitation (if applicable TV Licence include — L'audiovisuel public) and Taxes foncieres.
See alsoDepartments and Regions in FranceCLICK HERE
Buying a Property in France CLICK HERE
Buy to Let Europe CLICK HERE
Fact File Nice CLICK HERE
Places to Visit in the South of France CLICK HERETaxe de séjour CLICK HERE
Tax Declarations in France CLICK HERE
Riviera realty French Property News article from September 2006 by Karen Tait CLICK HERE
Biot — Cannes — Monaco Côte d'Azur, South of France CLICK HERE
Tips and Topics in France CLICK HERE
Holiday Home Property Insurance for France, Spain, Portugal, Greece, Italy, Ireland, Germany, Belgium, Holland, Denmark, Sweden, Malta, Cyprus, England, Scotland and Wales — visit our Holday Home Insurance section.
jml Property Services are members of The British Chamber of Commerce – Cote d’Azur – France