1. A question about available tax discounts (added 12/3/2009)...
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.

Our reply...
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.

2. A question about Taxe Fonciere (added 12/3/09)...
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).

Our reply...
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

3. A question about Taxe d'Habitation (added 12/3/09)...
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?

Our reply...
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.

4. A question about both Taxe Fonciere and Taxe d'Habitation (added 12/3/09)...
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?

Our reply...
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.

5. A question about discounts available (added 12/3/09)...
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.

Our reply...
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.

6. A question about altering rooms in properties the effect on property tax (added 13/8/09)...
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?

Jo Rhodes, editor of French Property Links replies...
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.

7. A question about Taxe d'Habitation (added 13/8/09)...
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?

Jo Rhodes, editor of French Property Links replies...
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.

Update from previous question...
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.

8. A question about possible discounts (added 13/8/09)...
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?

Our reply...
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.

9. A question about income exemption (added 15/10/09)...
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.

Jo Rhodes, editor of French Property Links replies...
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.