Jos Deuling,  Monday, 22 July 2024

 

If you own or rent a home in France, you need to pay local property taxes. The primary taxes are Taxe Foncière and Taxe d'Habitation. Taxe Foncière is a land tax paid by property owners, while Taxe d'Habitation, which was previously a resident tax, is now largely abolished for primary residences since 2023. However, Taxe d'Habitation still applies to second homes and vacant properties.

Taxe Foncière

Taxe Foncière is paid by the property owner and is divided into two parts: a tax on buildings (Taxe Foncière sur les Propriétés Bâties) and a tax on land (Taxe Foncière sur les Propriétés non Bâties). This tax is based on the cadastral rental value (valeur locative cadastrale) of the property, which is updated annually according to the consumer price index. For 2024, this value is set to increase by 3.9%​​.

Exemptions and Discounts

Exemptions are available for:

Residents aged 75 or older as of January 1st, or those receiving certain disability or old-age pensions, provided their income is below specific thresholds. For 2024, the income limits are €12,455 for a single person and €19,107 for a couple​.
New homes and renovated homes used as a main residence are exempt from Taxe Foncière for the first two years after completion. Eligibility for renovated homes depends on the nature and extent of the renovations​.

Taxe d'Habitation

Taxe d'Habitation is now only levied on second homes and vacant properties. It is based on the notional rental value of the property, multiplied by the tax rate set by local authorities. This tax can be significantly higher in areas with housing shortages, potentially increasing by 5% to 60%​.

Payment Deadlines

Taxe Foncière: Bills are typically sent out in September, with payments due by mid-October.
Taxe d'Habitation: Bills for second homes are sent out in November, with payments due by mid-December​.

Payment Methods

Payments can be made by check, bank transfer, or online through the official French tax portal. Late payments incur a 10% penalty

​. Specific Scenarios for Taxe d'Habitation

Exemptions for Taxe d'Habitation on second homes are limited but may apply if:

The property is near the owner's workplace.
The main home requires proximity due to care needs.
The home is uninhabitable due to circumstances beyond the owner's control​.

Additional Information

For personalized advice and the most current information, it is recommended to consult a tax professional or check the latest updates from official French tax authorities.

This summary ensures you are up-to-date with the latest property tax regulations in France, reflecting the ongoing adjustments aimed at balancing fiscal policies and addressing housing shortages.



France has introduced several significant changes to the taxation of second homes in 2024, primarily aimed at addressing housing shortages and generating additional revenue for local communes.


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