Homeowners wanting to expand their French properties are facing a tax increase this year, as France’s ‘garden shed tax’ has risen by around 6.5% for 2022.
The taxe d’aménagement (development tax) applies to home development projects that are subject to planning permission eg. construction of new sheds or extensions such as conservatories. The ‘valeur forfaitaire’, (standard value) per m², used to calculate tax for these new constructions is reviewed each year in relation to changes in the construction cost index. For 2022, the standard values have been set at €820/m2 outside Île-de-France (compared to €767/m² in 2021) and €929/m² in Île-de-France (compared to €870/m² in 2021).
How is taxe d’aménagement calculated
The ‘standard value’ is only one element of the tax calculation, however. There are two parts to the tax – a municipal or intermunicipal share and a departmental share. For each of these, tax is calculated according to the taxable area (eg the size of the shed or extension to be built), multiplied by the ‘standard value’ set by the state, and multiplied by the percentage tax rate (usually 1-5%) set by the municipality, intermunicipality or department.
Garden shed tax calculation:
(taxable area x standard value x municipal or inter-municipal rate) + (taxable area x standard value x departmental rate)
Which developments are taxed?
The taxe d’aménagement applies where the construction project creates a new covered surface area greater than 5m² and with a ceiling height of 1.8m or above. This can be either in the garden or as part of an existing building, including attic and cellar spaces. Areas that are not enclosed such as a terrace or pergola are not taxable.
Swimming pools, and solar panels that are fixed to the ground are taxed but have separate standard values applicable to them. For 2022 this has been set at €200/m² for swimming pools and €10/m² for solar panels. If you are carving out space for outdoor living also note that pitches for tents, caravans and recreational mobile homes on a campground or a natural camping area have a lump sum tax of €3,000 per pitch. If you install a wind turbine that is over 12m the figure is €3,000 per wind turbine, while large outdoor parking areas for multiple cars can be €2,000 to € 5,000 per pitch (depending on the local authority).
This is the sixth consecutive year that the development tax has increased, since 2017 when the valeur forfaitaire outside Île-de-France was €705/m² and inside Île-de-France was €799. In 2019 the standard value was €753 outside Île-de-France and €854 inside Île-de-France. The taxe d’aménagement was introduced in 2012 to replace previous urban planning taxes.
Find out more about the taxe d’aménagement (in French) on service-public.fr