A guide to tax that is payable on French property
In England you have the dreaded Council Tax, in France we have Taxe d'Habitation and Taxe Foncière. There's no escaping it, in whichever country you decide to take up residence, you will have to pay a property tax of some sort. Taxes can be a very worrying part of the decision to make a new life abroad, so it is important to know exactly what taxes you may be liable for and how you will be charged. You may also wonder, will you be better off in France or in England? On the face of it, one tax sounds better than two, but does it really pan out like that?
Wherever you live, you will benefit from local services such as street lighting, street cleaning and collection of waste and recyclable materials. Local administrative services have to be maintained and financed, and everybody who is part of a community has to pay their share. Both the property taxes in France and the Council Tax in England serve the same purpose, that is, to cover these and similar costs.
Taxe Foncière is the tax that is levied on property owners. Whoever you are, whether you live in the property or not, if you own it you must pay up.
Taxe Foncière is more expensive than the other property tax, Taxe d'Habitation, but the actual amount varies according to where the property is, as well as the "Valeur Locative Cadestral", or in English, the (notional) rental value.
The amounts payable are decided by the local authorities of each region. Some regions are much more expensive than others, so you cannot make a guess at the rates of taxation by comparing your house with a similar property elsewhere.
The valeur locative cadestrale is reviewed every year, so the Taxe Foncière can be changed according to the findings of the review committees. The tax is calculated on two counts, that is, on the buildings and the land that together form the property. It is also your responsibility to update the information held on your property if you make substantial improvements that will affect the notional rental value, such as the addition of a swimming pool (Installing a swimming pool in France) or a gîte (Owning Gîtes and Chambres D'Hotes (B&Bs) in France, Gites for sale).
Taxe Foncière is usually payable in October, on a date that will be specified on the form you receive in the post. Take note, though, if you have only just become a French property owner and this is your first Taxe Foncière bill, make sure that you have received it during September. If not, go to the local council offices, or contact them and request it. What happens frequently in these circumstances is that the bill is sent to the English address (even if you have sold up and moved out to France) with the result that the tax is not paid on time and a fine is levied. Sometimes it is possible to have this fine revoked in these circumstances, but it is a subjective matter and cannot be relied upon! To avoid possible problems, as with all things to do with taxes and France, take the initiative and make sure it is paid before any problems can arise.
The second property tax in France is known as Taxe d'Habitation, and this is paid by the occupiers of a property, whether they own it or rent it. If you live in the property but do not own it, therefore, you are liable to pay this tax although you do not have to pay the Taxe Foncière. If you own the property but rent it out to someone else, the Taxe Foncière is your responsibility but not the Taxe d'Habitation... as long as the occupiers do pay up. If not, the bad news is that you, as owner, then become liable. It is also worth noting that this tax also includes the television licence fee, and this is obligatory to pay if you have a television at all in the property, whether or not you claim to use it to watch television, let alone French television (Television in France and French TV)!
Taxe d'Habitation, or the occupancy tax, is less expensive than the tax on ownership of property. Like the Foncière tax, however, it varies considerably from place to place. As a general rule, towns are more expensive than villages, and country properties less costly still.
The amounts are decided by the local authorities in the same manner as the Foncière tax.
The Taxe d'Habitation is payable in November each year.
Council Tax is England's equivalent of the property taxes levied in France. Brought in to replace and rationalise the highly unpopular Poll Tax, Council Tax is set according to property value and organised into bands, with Band A being the lowest end of the scale, and Band F the highest. The amount of Council Tax payable also varies from place to place according to the rates set by local authorities. Council tax is set to cover the cost of local services such as refuse collection and street cleaning in much the same way as the property taxes in France.
It is worth noting that although most people are liable for these taxes, there are a few exemptions and discounts in both countries. Some new buildings may be exempt from property taxes in France for the first couple of years, but you need to make an application to the authorities. France also makes reductions or exemptions for those over a certain age, for students, for people with certain disabilities and for those on low incomes, as long as the property is their main residence. These reductions are given only if you have submitted a tax return in France, declaring your income. They are given automatically by the local tax authorities when you submit your tax return. Should you think yourself eligible for a discount and it has not been awarded, you will need to contact your local council offices (Centre des Impots Fonciers or Bureau de Cadastre) to sort it out. In England there are similar exemptions and reductions for those on disability allowance, pensioners and the unemployed.
With the Taxe Fonciere, a reduction may be possible for those French residents over the age of 75, if on low income (limits in 2010 are currently 9,876 Euros for one person and 15,150 Euros for a couple). Reductions may also be made for those over 65 years old, depending on their resources. With Taxe d'Habitation, total exemption from the tax may be given to those over 60 years old, as long as they would not be eligible for wealth tax (French Wealth Tax) and their income is not above the limits mentioned above.
Will you be better off in England or in France? I must stress here that it is impossible to say with complete certainty or accuracy, as every case is different, but as a comparison, take a look at the figures for a Band F property in Derwentside, Co Durham. The council tax for this type of property (value on or over £320,000) is currently standing at almost £3,000. A similar property here, in a similar situation (as in terms of value, facilities, proximity to towns etc.) is charged at 700 Euros for the Foncière tax and 450 Euros for the d'Habitation tax. That is a significant difference!
Additional articles which may be of interest:
Tax in France
Savings and investments in France
Sarkozy and French property owners
Banking in France
Joanna Simm moved to the Languedoc area of south-west France in October 2004 having found her property through French Property Links.
I found your article on property tax (Tax Fonciere & Tax d'habitation) quite informative. However, in the exemptions there is no mention of whether a house being renovated can have any tax discounts? I am getting different information from several sources so a definitive answer would have been great.
Thanks for contacting us. If you are referring to discounts on Taxe Fonciere & Tax d'Habitation, then I understand that owners of new and restored homes can be exempt from paying the Taxe Fonciere for up to two years from the 1st of January following completion of the restoration. (However, I am not sure if a renovated property is considered to be the same as a restored property.) For this discount, you have to apply within 90 days of completion of the work, to your local property tax office (Centre des Impots Fonciers or Bureau de Cadastre) before the 31st December for exemption for the following year. So I would suggest that you contact this office in order to get a definitive answer as to whether this exemption would apply to your renovation.
And if you are thinking of other tax discounts that you might be able to get, I know you can get tax discounts on materials used in renovating a property if you use a French registered builder, and there are ways of reducing capital gains tax on the sale of a renovated property (see our articles on "Tax in France" and "House Renovations in France").
You might also be interested to read our article "Property grants available in France" (http://www.frenchpropertylinks.com/essential/property-grants-france.html).
I hope this information will be of some use.
I have what I hope is a simple question you may be able to answer. I am now the proud owner of a property in the Charentes which I purchased from an English couple in mid-January this year. They have received the Taxe Fonciere and have told us as we are the owners that we are responsible for 11/12th of the bill and are looking for me to pay this to them. Could you confirm whether I have legal liability for this proportion of the Taxe or it is simply something perhaps they forgot to factor in when they were selling the property (they would have been fully aware of Taxe being charged annually as they had been the owners for over 10 years).
Thanks for contacting us. With regard to your question about Taxe Fonciere, I understand that in most cases where a property is sold, it is up to the notaire to arrange for new owners (ie: you) to agree to pay for the portion of the year that they will own the house. But this should have been sorted out when signing all the papers (I think in the final conveyance deed - acte de vente) so you would have been aware that a portion of this bill (and 11/12th sounds about right) would be due at about this time. If this wasn't included in the papers you signed and this wasn't discussed or agreed between the vendors and yourself, I would say you are under no obligation to pay it. I certainly don't believe there is a law which states that you must pay this portion of the tax fonciere bill.
However, as I am no legal expert, I would suggest you contact a legal advisor, perhaps using one from our Essential section or Services section of our site:
http://www.frenchpropertylinks.com/frenchlegalservices.htm
http://www.frenchpropertylinks.com/memberscat.asp?category=LEGAL
I hope that you can help with a question on this tax. We own an apartment in France and only use it for our own holidays, usually twice a year for a total of a month. Do we have to pay the full amount of Taxe d'Habitation?
Thanks for contacting us and apologies for the delay in reply. In answer to your question, I understand that as long as property is habitable, then the person who occupies it on the 1st of January is liable to pay the full amount of Taxe d'Habitation for that year, even if they might not be physically resident there at that time. This is also irrespective of how long they may physically be resident there throughout the year.
These matters are all decided by your local council authorities and the Mairie, so for further detailed information it might be worth you contacting them.
Can you tell me if I don't live in France but visit the house no more than 20 days a year - am I still liable for Taxe d'Habitation and Taxe Fonciere?
Also I do have a TV for videos - can you confirm that I would pay taxes on this TV? Is this also true?
Thanks for contacting us. In answer to your questions and as mentioned previously, I understand that as long as property is habitable, then the person who legally occupies it on the 1st of January in any year is liable to pay the full amount of Taxe d'Habitation for that year, even if they might not be physically resident there at that time. This is also irrespective of how long they may physically be resident there throughout the year.
I also believe the Taxe Fonciere must also be paid in full by the legal owners of the property, irrespective of how many days in the year they actually occupy the property for.
There are certain conditions where people may be exempt from paying both taxes or pay a reduced tax, but this is usually only where this property is the main residence.
And with regard to TV licences, I think this must also be paid in full, even though you are only using it for videos.
However, as I'm not an expert in these matters, I would suggest you contact your Mairie or local council office, as that is where these decisions are made.
Thanks for the website giving info on the taxes in France. There is something I would like to see added. We are retired. One person over 75 in poor health. The other over 60. Both receiving state retirement pension from the UK. Recently purchased a house in France (sole residence). In accordance with your info there should be concessions concerning both taxes. However the process for applying for them is unclear.
I have just trolled through the town making enquiries. MAIRIE---CENTRE FISCAL PERCEPTION----CENTRE DES´IMPOTS and then finally been
referred back to the MAIRIE. I still have not been able to apply for said concessions. My French is minimal but adequate for establishing that I am being fobbed off. Could you please provide the process for application in these circumstances? Merci boucoup.
Thanks for contacting us. I am sorry you are not getting anywhere with finding out about any discount you are entitled to. I would certainly say the Mairie should know all about this and point you in the right direction. It may be just a matter of persisting with the Mairie, though have you also tried the local council offices - the sous-prefecture? They should also know.
However, as I am not an expert in this matter I would suggest you contact a legal advisor should your local council office not be able to help, by using the following link:
http://www.frenchpropertylinks.com/frenchlegalservices.htm
You could also try a company such as Help in France, which offers all types of assistance to people who have moved to France:
http://www.help-in-france.co.uk/
Incidentally, my colleague whose father lives in France, says that he understands that you only get concessions if you have submitted a tax return in France declaring your income. Then once they know about you and can see your income you can claim the concession.
I bought an apartment in 2004 then another in 2006 and have now knocked through and combined them. A French friend suggested that, as I have removed one of the kitchens, perhaps my property tax should reduce. Do you know if this is the case please?
Thanks for contacting us. I have been in contact with my colleague Joanna in France who says:
"I'm afraid I'm not certain about this...I do know that the taxes do change according to the number of rooms in a house, but I don't know if that
includes the kitchen. Certain rooms, usually utilities, don't count in the room count, it is rooms such as bedrooms and sitting rooms that seem to make the difference. The best thing to do is to ask at the prefecture or mairie. It doesn't hurt to tell the tax people there has been a change, it can't put the tax up, so there nothing to lose."
I myself also understand that there is a legal obligation to tell the local tax authorities if you have made substantial alterations to a building, so
would advise you to do this whatever the outcome.
I am sorry we cannot be of more help, but hope this information will be of some use.
I have lived in France since September 07. I went to the tax office in May 08, and they gave me a tax form for 07, I said it I wanted it for 08 as I wasn't classed as resident in France in 07. They told me to come back in September. In September they told me to come back in May 09. I spoke to my Notaires agent and said I was worried as my Foncieres tax form had been sent to England and I didn't want any more mistakes. He rang the tax office and requested they use my married name instead of my birth name, and confirmed that I was now resident in France.
I didn't receive my tax forms when everyone else did so went to the tax office and completed them. I asked about habitation tax and the lady said no. I then received a demand for habitation tax in the post. I went in but my French is not quite good enough to explain, so I wrote a letter and got a friend to make sure it would be understood explaining why I should be exempt. I received a reply stating that I should be exempt, but as my home wasn't my principal residence I would have to pay. I went back with another friend who could speak French. Basically it appears that because I did not put in a tax return for 07 I cannot claim habitation tax exemption for 08. This was never explained, in fact although there are people who can speak English in the tax office, if you ask for assistance because your use of French is not up to dealing with the tax office you will not get it. I explained that I had been told I would not have to pay and I don't have £450 lying aorund. The lady was adamant. I asked what I had to do to prove the house was my principal residence and she stated that it didn't matter if I could prove it because I did not complete a tax return for 07, I would not get it. I said I didn't have the money to which she replied that if I didn't pay they would take it. By now it was getting close to lunch time and she suddenly suggested that perhaps I could get a discount if I completed a form. On this form I have to declare all my outgoings and my income. However, I feel that if I complete this I won't be able to challenge the decision. Can you advise please?
Thanks for contacting us. I would suggest that after what you have been through it may be worth contacting a company such as Help in France (http://www.help-in-france.co.uk/), who should be able to sort this out for you, for a relatively small fee. Or is it worth talking to the Mairie to see if they can help? From what you have said, I am not sure I understand why you would be exempt from Taxe d'Habitation.
I have also been in contact with my colleague Joanna in France who says the following:
"Nearly everyone I know has had the problem of their Taxe Foncière and Taxe d'Habitation being sent to English addresses... normally a trip to see them in person at the office has sorted it out (especially if you arrange to pay by direct debit).
And completing the requested form should not mean there is no chance to challenge, usually the more info. they have from you the better your chances of getting somewhere."
I'm sorry we cannot be of more help, but we do wish you all the best in attempting to resolve this matter.
Thanks, it's all sorted now, what is needed was a calm translator. A friend came with me, we discussed what had happened before we got to the office and she asked the questions that I wanted and it has been sorted. This problem arose basically because of the lack of information and language difficulties. It would be so much better if the French tax authorities did a basic information pack in English.
The first time I went, language was the major problem. I thought they were telling me I had to pay tax for 2007, but I had already been taxed in UK as I was resident there six months of 2007=08 tax year. The lady I spoke to couldn't make me understand what I had to do and sent me away and told me to come back another time. I went back in September 08 and was told I did not need to go back until May 09. This confirmed with what I had read that tax was paid in arrears.
However, if you are retired, to claim habitation, you must register with the tax office your income for the year previously even if you were in UK the previous year. Then they are supposed to give you an orange form to complete. That apparently makes it clear you are a resident - not a letter from the local Mairie. The staff at my tax office do not speak any English and are not comfortable dealing with the English, unless they can speak French. So it is important to get a friend or someone who can translate and ask the questions you want to ask - not one that just flies off and goes on a mission of their own.
I have one form to complete with my bank details which is a DG1 and will return it to them tomorrow and then it is sorted.
Tax in France is probably one of the most important things to get right, and you cannot do it alone unless you are fluent.
I recently registered for paying tax in France and as my income is low I was not due to pay tax this year. I am a widow aged 68 years old, do I get a reduction on my habitation tax please?
Thanks for contacting us. From what you say it does sound as if you should get a reduction in your Taxe d'Habitation, if this property is your main residence (possibly even complete exemption). This should be done automatically by your tax authority when they receive your tax return. If this has not been done then you would need to visit your local Centre d'Impôts to sort it out.
Hi there - quite an important question with the fall in the Pound/Euro. I would like to know what the income exemption is for taxe d'habitation as I have only just realised that I may have overpaid for many years, as I did not know t is around 16,000 Euros for one and 23,000 Euros for two. Is this correct and if so how many years can I claim back if at all.
Thanks for contacting us. I am not an expert in tax matters but I understand exemption from paying Taxe d'Habitation may arise if your net income for 2008 was in the region of 10,000 Euros or less for one person, or in the region of 15,000 Euros or less for a couple, as long as you are either over 60 years old, are widowed or disabled and unable to work. You must also not be eligible for wealth tax and this must be your main residence.
If you do not fit into any of these groups, or if your net income was more than this you may be still able to get a reduction in your Taxe d'Habitation. The levels I understand in this case would be approximately 23,000 Euros or less for one person or approximately 33,000 Euros or less for a couple. Eligibility here also assumes you are not living with another family member who has a higher income.
Normally these exemptions are given only if you have submitted a tax return in France, declaring your income, and usually they are also given automatically by the local tax authorities when you submit your tax return.
If this doesn't seem to have been the case for you, I would suggest you contact your local Centre d’impôts to sort it out, or indeed your Mairie who should know all about this and point you in the right direction.
For expert advice and to get accurate tax levels and find out how many years you can claim back, you could also contact a legal advisor:
http://www.frenchpropertylinks.com/frenchlegalservices.htm
I hope this information has been of use.
Hi or Bonjour - I am 64 years and my wife is 62 years, we bought a property in France Nov 07, for £44K , it was unhabitable and in need of renovation/restoration. We applied for planning permission etc and this was granted. We received the Tax Fonciere bills for 2008 and 2009 and have paid them, but no bills arrived for the Habitation Tax. This is not our main residence in Europe, we live in the UK, however this French property is the only property we have in France and therefore is it really considered as a second property because this becomes our main home whilst in France? We are on a limited income, my wife has a pension of appx £2500pa and myself having to retire early, I receive £5200pa, so things are getting tight especially with the Pound/Euro going the wrong way and finding that most building material prices have risen by about 25% in the last two years. We have now received some sort of notification about Habitation Tax and that a mistake has been made and we will be receiving basically the bill. This property was vacant for twenty years previously without any fosse septique (we have installed this and had it inspected ) we still have no mains electricity, the work is not complete although we do occupy the premises when we are there. Should we be paying this tax yet or when the work is complete and while have no mains electric?
Thanks for contacting us. From what I understand, property that is being renovated is usually exempt from Taxe d'Habitation if uninhabitable, though
I am not entirely sure what the authorities might deem as uninhabitable. As you say you live there when you are in France, this exemption might not
apply. There are certainly discounts to be had if on low incomes however, but the problem here is that I understand this to only apply if your house
in France is your main residence, and you have submitted a tax return in France.
I would say that this property in France is certainly your second property, if you live for most of the year in the UK. It doesn't matter that it is
your only property in France, if you spend most of the year elsewhere.
But as I am not an expert in these matters, I would suggest you contact your local authorities to check if you would be entitled to any help with the
Taxe d'Habitation (Centre des Impots Fonciers or Bureau de Cadastre) or try your Mairie. It certainly would do no harm.
We bought a home in France in June 2009. It is a second home so we are resident in the UK. So far we have received no bill for either of the two taxes to our French or English address. I know that the notaire should have let the tax authorities know about a change of ownership of the property, so we should be registered. How long should we wait for these bills and who do we contact if we still don't receive something shortly ?
Thanks for contacting us. As far as I understand it these taxes are paid in arrears, so you will most probably get the bills in October and November this year, 2010. However it might be prudent to check with your local council offices (Centre des Impots Fonciers or Bureau de Cadastre) or your Mairie for confirmation of this, as I am no expert in this matter.
My wife and I are looking to rent a property in the Languedoc region and we have been asked to pay £195 (Taxe d'Habitation or Taxe Foncière?) for eight days stay by the vendor.
Is this normal? This makes the cost of both taxes approx £9,000. Is this a charge that we just have to accept? I look forward to hearing from you.
Thanks for contacting us. I am fairly sure that for short term holidays lets, no tax should be paid by the person letting the property (ie:you). The owner would normally pay all taxes. And if you were renting long term, the only tax that you might have to pay is Taxe d'Habitation, which is the lesser of the two taxes.
So I would certainly question the £195, if the owners are saying it is for either of these two taxes, as they should be paying these. You certainly don't have to accept the charge, though I guess they could then refuse to let you the property. (Of course this would not be to their advantage so I would hope this would not happen!)
I wish you all the best with sorting this out.
We were renting a flat in Bordeaux for eighteen months and moved out in January 2009. We have just received a demand for Taxe d'Habitation for 2009. Of which we spent two or three weeks. I understand that it is paid by the person in residence in the January.
However, how do we get this back? Who is liable now? This 2500 Euros and I can't be paying this for 3 weeks occupancy? Surely there is some liability
on the owner/landlord of the flat. Also, up until receiving today's letter, we received nothing from the Tax Office, this was first we heard about it.
Hope you can help.
Thanks for contacting us. I am afraid I have a feeling that if you were in residence on 1st January 2009, you may well be liable for the Taxe d'Habitation for the whole year, irrespective of how long you were actually renting the property for that year. I understand that this is the case unless a private agreement is reached between occupiers or people renting the property and the owners of the property.
However, you could certainly query this with the Centre des Impots Fonciers or Bureau de Cadastre if the bill has come from them, or check with the Mairie. Or perhaps it might be worth contacting the owners of the property to work out if you could reduce this bill somehow.
Bills are usually sent out towards the end of each year and are paid in arrears, so I'm not sure why this has arrived now, unless the owners of the property had an agreement with the property tax office to pay at this time.
Incidentally, I also undertand that should the Taxe d'Habitation not be paid by people renting a property for some reason, the owners of the property are liable.
I have been told by several people who are the same age as myself, that is, when you reach the age of 65 you do not have to pay Taxe Fonciere. If that is the case, I reached the age of 65 in July 2009, and would like to know why I still paid my Taxe Fonciere for 2009. I am permanent in France, and I do not have any other properties other than the one I live in. I look forward to your reply.
Thanks for contacting us. I understand that a reduction in the Taxe Fonciere bill might be available for those French residents over the age of 65, if on low incomes, otherwise exemptions may also be made for those over 75 years old. Income criteria is always looked at. Normally these exemptions or discounts are given only if you have submitted a tax return in France, declaring your income, and usually they are also given automatically by the local tax authorities when you submit your tax return.
If this doesn't seem to have been the case for you, I would suggest you contact your local council offices (Centre des Impots Fonciers or Bureau de Cadastre) to sort it out, or indeed your Mairie who should know all about this and point you in the right direction.
Hi - I've been following your threads on Taxe d'Habitation and Taxe Fonciere with some interest. We have owned a property in a village called Aups in the Var for ten years. We bought it to modify (ramps, hoists, etc) for our severely handicapped daughter, so that we could enjoy family holidays as she grew. Even though we only go for around four weeks per year, we have been paying both property taxes. The house is around 450m2, so is quite big, however we are now paying 3696 Euros in Taxe Fonciere and 3372 Euros in Tax d'Habitation, which seems a bit excessive to me.
About eight years ago, we bought a little village house of 150m2 to use for our daughter's carers when we are in France, to preserve a bit of family privacy. This house only costs us 474 Euros total per year in property taxes. The larger house is 800m outside the village with a garden and the smaller one is right in the middle of the village with no garden.
Do you have any idea why there is such a discrepancy in tax levels?
Thanks for contacting us. And though I cannot give you a definitive answer as to why your taxes are so different for each of your properties, I can think of a few possible reasons:
1. Your main house is considerably bigger that the house in the village.
2. Taxes vary with number of rooms, facilities available, size of garden, so again, your main house will be more expensive, with possibly the modifications for your daughter also affecting the tax bill.
3. Taxes are calculated from the notional rental value of the property, so again, the bigger house's rental value would be considerably more, so the taxes are more.
4. As the smaller property is used for your daughter's carer, this may reduce the tax somehow, as the carer is there for work.
And yes the taxes for your bigger house do seem high, but then you do own property in an affluent area of France, where property costs are high. As I am no expert in these matters however, for accurate advice on this and to check that you are paying the right amounts, I would suggest you contact your local property tax office (Centre des Impots Fonciers or Bureau de Cadastre) or indeed ask at your Mairie.
I hope this information will be of some use.
Hi - I received my Taxe d'Habitation today, in the post (in the UK). For the first time they have added 121.00 Euros for a TV Licence. My house is in the Languedoc and is a Maison Secondaire. I am restoring it, and have no TV or even an aerial or dish on the property. I spend on average about two months per year in the property, as I still live in the UK in Essex. Am I liable to pay this? Many thanks for your help and time.
Thanks for contacting us. With regard to your bill for a TV Licence, I am pretty certain that you would not have to pay this if you do not have a TV at all in France, but you would have to contact your local tax authorities to tell them that you do not have a TV at your property (Centre des Impots Fonciers or Bureau de Cadastre).
I am an Irish citizen still living in Ireland. I bought a property in Aixe sur vienne in 2004. We have been renovating for four years and it is now finished. We received a Taxe d'Habitation demand for 926 Euros a few days ago. The house is habitable and we spend a maximum of nine weeks there each year. It is not and will not be rented. We do not intend to live in France. I am retired and will be 62 in April. My wife is on disability benefit and is 58. We have no dependents. Are we exempt from any of this tax?
Thanks for contacting us. With regard to your circumstances, I am not sure you would be entitled to any exemption from your Taxe d'Habitation as you are not a French resident and your house in France is not your main residence. However, as I am not an expert in these matters, it may be worth confirming this with your local property tax office (Centre des Impots Fonciers or Bureau de Cadastre) or your Mairie.
I wondered if you could help me. I have had a house in France for several years and paid the Taxe d'Habitation each year by prelevement. In January 2009 I sold the house. The furniture was removed several weeks prior to the settlement. I have been having the prelevements taken out of my French bank account for the Taxe d'Habitation all through 2010. When I inquired of friends I was told that I had to pay a year's Taxe d'Habitation even though I didn't own the property anymore and that I then had to reclaim that year's tax back from the new owners!! Is that correct? Also I have received another demand from the tressoir public for 450 Euros for 2010 Taxe d'Habitation. I have ignored this demand. Was that wise? Could you tell me when I can expect to stop paying tax for a house I no longer own.
Thanks for contacting us. I am afraid I have a feeling that if you owned your house on 1st January 2009, you may well have been liable for the Taxe d'Habitation for the whole year, unless a private agreement was reached between the new owners and yourself on the sale of your property saying otherwise. If you didn't have an agreement in place which is what it sounds like, you can always try and get the money back from them but I don't think they would be under any obligation to refund you. Taxes are paid in arrears, so that is why you would have been paying for this throughout 2010.
However, you certainly should not be getting a bill for 2010. I would query this with the Centre des Impots Fonciers or Bureau de Cadastre if the bill has come from them and explain your situation, as it seems as if they are not aware that you sold the property. I would not ignore the bill.
Hi - my father had lived in SW France for the past eight years, but sadly died last month. I am trying to sort out his estate etc and would like to know whether or not I am liable for the Taxe Fonciere or Taxe d`Habitation on his property? It may well take us several months (or longer) to sell his house and while I have his bill for 2010, do you think I`ll be liable for 2011??
Thanks for contacting us. I am so sorry to hear of your father's death.
Unfortunately, if you own a property in France on 1st January of any year which is not rented out, you are liable for both the Taxe Fonciere and Taxe d`Habitation for that full year. However, what you can do is on selling the property, make sure there is an agreement in place between yourself and the new owners (incorporated in the sale and purchase agreement) that they will pay their share of the year's taxes. The notaire should be able to help with this. I would also then make sure the Centre des Impots Fonciers or Bureau de Cadastre is aware that you no longer own the property, so no further bills will come to you or your father's estate.
I wish you all the best with sorting it all out, and my thoughts are with you at this sad time.
I am the owner of a house in a rural village in the south of France and cannot believe that my taxes are correct but am struggling to obtain clarification from the local tax offices. I currently pay 2314 Euros for Taxe Fonciere and 2495 Euros for Taxe d'Habitation which seems extremely high. Do you have any means by which I can make any comparison. The house is 199 metres square. I have a breakdown of the calculation from the tax office but it is a catalogue of codes which are impossible to understand. Any guidance would be greatly appreciated.
Thanks for contacting us. Your taxes do seem high for the size, but I have no idea where you live or what your house is like. And as so many things are taken into consideration by the local property tax offices when working out these taxes, I would not like to guess as to the reasons why they have charged you these amounts.
I can only suggest you go back to them and get them to explain all the codes, or indeed ask at your Mairie as they may well be able to help. I'm sorry not to be able to help further.
We are currently trying to sort out whether or not we still have to pay Taxe d'Habitation. My wife is over sixty years of age although I am not yet sixty. With our combined income being less than that stated in your information are we exempt from paying Taxe d'Habitation?
Thanks for contacting us. As far as I understand, because your wife is over sixty, and your combined income is less than 15,376 Euros (please note new 2011 limit, values in article were for 2010), you should be exempt from paying the Taxe d'Habitation (including TV licence) as long as the property to which this Taxe d'Habitation refers to is your main residence, you are not eligible for French Weath Tax and you have submitted a tax return in France, declaring your income.
This should be dealt with automatically by the local tax authorities when you submit your tax return. Should you think yourself eligible for exemption and it has not been awarded, you will need to contact your local council offices (Centre des Impots Fonciers or Bureau de Cadastre) to sort it out.
We are finding the Tax Fonciere and Taxe d'Habitation very confusing. Are there English versions or translations of these forms. We feel that as we only use this house about six times per year our tax is very high and I have been told there is a new tax coming in where second home owners are going to get clobbered.
Thanks for contacting us. Unfortunately these taxes are paid irrespective of how long you occupy the house for in any year, if you do not rent out the property. If you have any queries about your bill, you should contact your local property tax office (Centre des Impots Fonciers or Bureau de Cadastre).
I'm afraid I am unaware of any English translations of these forms, though you could always try a company which offers all types of assistance to people who have moved to France, or a company offering a translation service. Both such companies can be found from the Service section of our site:
http://www.frenchpropertylinks.com/members.asp
But there may be some good news for you regarding tax on second homes, as there has been a turnaround about this. You might like to read our article "French Tax on Holiday Homes Dropped" (http://www.frenchpropertylinks.com/french-property-sales/french-holiday-home-tax.html).
I wondered if you could clarify whether I am
entitled to a reduction/exemption. I am 64. My wife (who was 70) sadly died on 22 January this year (so after the 1st January...). Can I:
a) get a reduction/exemption due to there being only a single owner/occupancy?
b) get an exemption as I am over 60? Should we have been getting this anyway and if so can I claim retrospectively?
I spend several months during the year - am not resident or a taxpayer in France and (once mortgage is offest) am not liable for French Weath Tax.
Thanks for contacting us, though I was sorry to hear that your wife passed away. I am also sorry to have to say that I think reductions and exemptions in these taxes only apply to French residents and if the property the taxes relate to is their main residence. It seems neither of these applies to you so I'm afraid I don't think you would get any discount.
However, as I am not an expert in these matters, I would suggest you contact your local council offices (Centre des Impots Fonciers or Bureau de Cadastre) for confirmation of this.
We let an apt ( bought five years ago) in France for the academic year to students. We pay income tax in France on the French rental income. We also pay Taxe Fonciere. We are unsure about whether or not the students are getting the Taxe d'Habitation bill as we have not had one since 2007. From 2008 we did not receive a bill but my husband got cancer and I was more concerned with that. Happily he is now well again and my habitual worrying has turned to more mundane money matters!
I wonder if the fact that we are were paying income tax on the rental income, persuaded the French tax office that we are not liable. However I doubt the students will have paid and I am wondering if there is a large bill waiting for me somewhere. There is lots of conflicting advice out there. I would be delighted if you could advise me. I have three questions:
1. Is the lease supposed to be registered with the mayor's office so that they know who is resident and therefore liable for the tax?
2. If they (students) are exempt does that mean the landlord is also exempt? We sign Caf forms every year.
3. If they ask for separate contracts (two students sharing a two bedroom apt) does that mean the landlord is subletting and therefore liable for the Taxe d'Habitation?
For the first time I have French students staying this year from September, so I better know the right way! Thanks a million for your advice- it is very difficult trawling through is so much conficting information on the internet.
Thanks for contacting us, though as your questions are very specific and I am not an expert in these matters, I'm afraid I cannot be of much help. I would think that if your students were exempt from this tax, then you would not have to pay, as you are not living in the property, but as for your other questions, I would suggest you contact your Mairie and your local property tax office (Centre des Impots Fonciers or Bureau de Cadastre) to find out the legalities involved here.
You could also contact a legal advisor, perhaps using the following page of our site:
http://www.frenchpropertylinks.com/frenchlegalservices.htm
(Fees are not always charged if the questions asked only warrant a quick and easy reply.)
I wonder if you could help. I bought a property about eight years ago in the Dordogne with an ex-partner. We split up about five years ago and both moved back to the UK leaving the place empty. It has been on the market for five years without success and for the last three years she has not contributed to any house bills including Taxe Fonciere which is quite expensive £1500/ann) which I have paid. Since the house is deteriorating and losing value every year, I do object to paying this tax. Can you advise what is likely to happen if I stop paying this tax? (Taxe d'Habitation is not paid as we don't live there any more.)
Thanks for contacting us. I am sorry to hear of your situation. In the first instance I would suggest you contact your local property tax offices (Centre des Impots Fonciers or Bureau de Cadastre) to see if you can obtain an exemption or discount with regard to your Taxe Fonciere, as your property is empty. Certainly with landlords letting property out, if they are unable to and the property is empty, relief is sometimes given. You will probably have to prove that you have been actively trying to sell it for a certain amount of time.
Unfortunately if you just stop paying this tax of your own accord, I would think fines may be levied, and even worse, so I would not suggest you go down that route.
We own our house in the Alpes-Maritimes and we live here permanently - have no other property anywhere. We were recently told - in very vague fashion - by other ex-patriates in the region that they were being charged the tax rate for a second home, not a main permanent home. When they queried this, they were switched to a lower rate. It is not clear whether they were referring to Habitation or Foncières. Unfortunately I cannot verify this information, and can find nothing on the subject on-line. Do you know if it is the case that there are different rates for second and main homes? If so, do you know how or where we could check our own rate out?
Thanks for contacting us. The only differences I was aware of between main homes and second homes in France, with regards to the French property taxes (Taxe Fonciere and Taxe d'Habitation), were that with main homes certain discounts can be given and exemptions made to certain home owners. Though as I am not an expert in these matters, should you have any concerns about your tax rates, I would suggest you contact your local council offices (Centre des Impots Fonciers or Bureau de Cadastre) for accurate advice.
Thanks for your answer. In fact there is no difference with the Taxe Fonciere, but there can, I think depending on where one lives, be some difference in the Taxe d'Habitation - the total charged on a second residence can be more than on a principal residence. Why? No idea!
Good Morning - I would appreciate your assistance/clarification on the following please:
Birthdate 1 September 1946
I moved into my sole residence 30 April 2010 in Dept 22 after living in rented for six months and prior to that I was living in my house in the Auvergne and I was registered with Hotel Impot (Dept 03).
On my move I wrote to Hotel Impot (Dept 03) in Montlucon (Auvergne) to inform them that I had bought a house and moved to Dept 22 and would they transfer my papers over to Loudeac. I registered my Tax Form last May 2011 in Loudeac - I made a personal visit.
I paid the previous owner of this house pro-rata Taxes Fonciere and Cideral Rubbish Collection in the Autumn 2010 that covered the period from the time I took the house over (30 April) to the end of the financial year.
I tried to set up a prevalement to cover this last year 2011 to no avail so consequently I had a large bill but that has now been resolved after going to Hotel Impot at Loudeac last week and a prevalement has been organised for the coming year. When I was trying to organise everything etc a prevalement was set up in February 2011 to pay Habitation Tax, and Hotel Impot had sight of my birth certificate and passport to verify my age etc. Upon reading many articles I discover that as I am over 60 years that I am exempt from Taxe d'Habitation and TV Licence etc. but I ask the question - why did I have to pay Taxe d'Habitation and if I have paid in error due to the information given by Hotel Impot am I entitled to have the money returned to me and if so how do I go about it?
Thanks for contacting us. I understand you would be entitled to exemption from Taxe d'Habitation if you are over 60 years old, as long as you would not be eligible for French Wealth Tax and your income is not above certain limits (limits in 2010 were 9,876 Euros for one person and 15,150 Euros for a couple). Reductions such as this are given only if you have submitted a tax return in France, declaring your income. They are usually given automatically by the local tax authorities when you submit your tax return.
As this doesn't seem to have been done in your case, I would suggest you contact your Centre des Impots Fonciers or Bureau de Cadastre to query this, as they are the only ones who can sort it out.
Just a little update on the above enquiry I made last month. I am going to be reimbursed my Habitation Tax for the this year 2011, around 540 Euros - should be with me within the next two weeks according to the email received this morning. Thank you for your advice.
I am now going to check on Taxe Fonciere - I know that I have not reached 75 but I am 65 and I receive a Disability Pension from the Military. I do not know what level you have to receive before it is considered. I am also going to write to the Cadaste Hotel Impot and see what they have to say.
I sold my French house in July of this year. During the sale there was an agreement with the purchaser for the balance of the Taxe Fonciere. In September I received the Taxe Fonciere demand for 2011 and paid the full amount in the belief that I was liable for the full year of 2011. I have now received a demand for the Taxe d'Habitation, am I liable for this? I thought that I had paid for the year 2011 in advance when I paid the Taxe d'Habitation at the end of last year. I look forward to hearing from you.
Thanks for contacting us. I understand that Taxe d'Habitation is paid in arrears, as is Taxe Fonciere, so I think this bill may be right, as you owned the property on 1st January 2011.
Though for expert advice, I would suggest you contact your local authorities (Centre des Impots Fonciers or Bureau de Cadastre) or try your Mairie.
In your article, which is most helpful, you state "Taxe Foncière is more expensive than the other property tax, Taxe d'Habitation" and yet, having now renovated a barn into a house, I was charged 792 Euros for the Taxe Foncière in October and have just been charged 902 Euros for the Taxe d'Habitation, i.e. not as stated by you.
Are there variances to the rule or is it possible I have been overcharged for the latter or, worse still, undercharged for the former? As I now own a large four bedroom house in almost an acre of land I think both taxes are reasonable but am curious to know your answer.
Thanks for contacting us. I am unsure as to why your taxes differ to what is normally the case, ie: Taxe'Habitation being less than Taxe Fonciere. I have not heard of this happening before, though there have been increases to both tax rates over the last couple of years, with some areas of France increasing the rates of one tax more than the rates of the other tax, so maybe this has happened in the area where you live. (The tax rates do vary throughout the country.) I can only suggest you ask your local property tax offices (Centre des Impots Fonciers or Bureau de Cadastre) or try your Mairie to confirm the amounts are correct.
Having recently sold my property in France (July 7 2011) with absolutely no problem what so ever, I am still receiving bills for Tax Fonciere and Habitation. I have written to the tax people enclosing a copy of the sale of the house and still payment has been demanded, now with a penalty.Can you please put me in touch with some one to advise and hopefully claim back this rather large amount of money. Thanking you in advance.
Thanks for contacting us. I understand that both the above taxes are usually payable in arrears, so as you only sold your property in July this year, I would say the bills, which would have been for the last year, should be payable by you.
However, when property is sold part way through a year, an arrangement is normally put in place at the time of sale, whereby the new owners pay for a proportion of these bills, depending on when they take over the property. It is up to the notaire to arrange for new owners to agree to pay for the portion of the year that they will own the house. But this should have been sorted out when signing all the papers (I think in the final conveyance deed - acte de vente) so you would have been aware that a portion of this bill would be down to you, and a portion down to the new owners, perhaps already paid in the final amount given by them in July. If this wasn't included in the papers you signed and this wasn't discussed or agreed between the vendors and yourself, I would say you unfortunately may well be liable.
However, for expert advice you may wish to contact a legal advisor, perhaps using the following page on our site:
http://www.frenchpropertylinks.com/frenchlegalservices.htm
And of course your old local council offices (Centre des Impots Fonciers or Bureau de Cadastre) or your old Mairie should be able to explain the ins and outs of your bills, so I would keep pursuing this with them if you are not happy.
I have a question regarding Taxe d'Habitation during the sale of an apartment. The compromis de vente will be signed this week in December and the completion date will be around the 25th of January. The apartment will be empty of all furniture etc on the 1st January 2012. How do I prove its empty to the Tax Office? If I can prove its empty does this mean I don't have to pay the Taxe d'Habitation for 2012? Also what about the Taxe Fonciere? I don't want to by paying any taxes that the new owner should be paying. Thanks for the help.
Thanks for contacting us. I would think as you will own the property on 1st January 2012, you will definitely be liable for the year's Taxe Fonciere. And even if you are not occupying the apartment on the 1st January 2012, the apartment would still be capable of occupation, so you may well be charged for Taxe d'Habitation as well.
However, as I am not an expert in these matters, I would speak to your local authorities (Centre des Impots Fonciers or Bureau de Cadastre) or try your Mairie, as soon as possible, to get them to confirm if you will be liable or not for the property taxes.
And if you are, all is not lost. If you are liable for the taxes, you should bring this to the attention of your notaire, as he/she should then arrange for the new owners to pay for a proportion of these bills, ie: for the portion of the year that they will own the house, which in your case should be the majority of the bill. This is normally sorted out when signing all the papers (in the final conveyance deed - acte de vente). I understand they then pay their amount of the bill when paying for your house in full (on 25th January 2012 or thereabouts), or it might be that an agreement is put in place that they pay when you receive the bill from the local property tax office, later in the year.
Hello - could you tell me if I have to pay Taxe d'Habitation for 2011, although the apartment block where I have my second residence was not habitable for the first couple of months of the year following a fire in December? Entry to the building was forbidden by the Mairie. Many thanks.
Thanks for contacting us. I would certainly speak to your local authorities (Centre des Impots Fonciers or Bureau de Cadastre) or even your Mairie, to check about this. I would think a discount might well be possible, but as your apartment was only inhabitable for a couple of months, I also think that much of the bill will have to be paid.
Hello. My wife and I purchased a house in Languedoc last year. We do not live in it yet. We thought that we had to pay Taxe d'Habitation. However, your information suggests that since we do not live in the property for many weeks of the year we do not have to pay it. If this is the case, what chances are there to obtain a refund, it's about 800 Euros? Thanks.
Thanks for contacting us. You do not give full details of your property, but I understand that if a property in France is habitable, and is not rented out on a long-term basis, both Taxe Fonciere and Taxe d'Habitation would have to be paid by the owner. So this is irrespective of how long you occupy the house for in any year. (If it is rented out on a long-term basis Taxe d'Habitation is paid by the tenant, and if rented out on a short-term basis then you may be exempt from Taxe d'Habitation, though you would then be liable for taxes payable on a business.)
If the property is not yet habitable however, ie: not furnished and with no services connected, then I think you may well be able to get a discount or exemption from Taxe d'Habitation. You should contact your local property tax office (Centre des Impots Fonciers or Bureau de Cadastre) or Mairie to check this out.
For the third year of her UK university course (French) my daughter was an English language assistant in Brittany from September 2010 to April 2011. Her accommodation was in a furnished apartment (one bed). She has just received a Taxe d'Habitation demand - are university students expected to pay this (the bill is for 450 Euros)?
Thanks for contacting us. I understand that overseas students in France do normally pay Taxe d'Habitation bills, if they are resident in the property on the 1st January. However, if their income is low, discounts may be available.
In any case, it is always worth querying the bill if you or she are at all uncertain if it is correct, so I would get in touch with her local authorities (Centre des Impots Fonciers or Bureau de Cadastre) for a definitive answer.
My property is a second home and the Taxe d'Habitation is much higher than if I was resident. When I purchased in May 2009 the previous owner paid 130 Euros. For 2010 I had to pay 634 Euros, plus 121 Euros for the TV licence. I get no relief for the TV even though I am well over 60, when residents do not have to pay anything for that licence.
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