If you’re considering purchasing property in France, it’s essential to understand “taxe foncière”—the main property tax in France. Whether you’re buying a holiday home, investing, or planning to relocate, this article will explain what you need to know clearly and simply.
What is Taxe Foncière?
Taxe foncière is an annual property tax payable by all property owners in France. This includes houses, apartments, commercial properties, and even undeveloped land. The tax applies regardless of whether you live permanently in France or just own property here.
How is Taxe Foncière Calculated?
The tax is based on:
- The property’s rental value (known as “valeur locative cadastrale”), regularly assessed by local authorities.
- Local tax rates set by municipalities and regional governments.
Changes Following the Removal of “Taxe d’Habitation”
Recently, France has removed another major tax called the “taxe d’habitation” on primary residences. To compensate for the loss in revenue, many local governments have increased the taxe foncière rates. As a result, property owners have noticed significant increases in recent years, making it crucial to factor this tax into your budgeting when buying property in France.
Important Considerations for Prospective Property Owners
- Payment deadlines: Taxe foncière is typically due in October each year, and payments are usually made online via impots.gouv.fr.
- Late payments: Late payment can result in penalties, so it’s important to ensure timely payment.
- Notifications: Keep your address and contact information updated with the French tax authorities to avoid missing any important notices.
Ways to Reduce or Manage Taxe Foncière
France provides certain reductions or exemptions, especially for energy-efficient properties or newly constructed buildings. Exploring these options before buying can help significantly reduce your annual property expenses.
Conclusion
Being well-informed about taxe foncière helps you better plan your property investment in France. Knowing its calculation, recent trends, and possible reductions ensures that you can own property in France without unexpected financial surprises.