CHRISTMAS OFFER Subscribe to France Magazines today CLICK HERE

Tax payable on a second home in France

PUBLISHED: 11:17 07 April 2015 | UPDATED: 11:17 07 April 2015

Property for sale in Tarn, 445,000 euros, www.agencelunion.com

Property for sale in Tarn, 445,000 euros, www.agencelunion.com

Archant

The French tax system can be confusing for expats, so we asked a tax expert to explain the taxes you will have to pay on a second home in France

Both residents and non-residents pay annual property taxes (taxe d’habitation and taxe foncière) on French property.

1. TAXE D’HABITATION

The taxe d’habitation is based on the notional rental value for the property, multiplied by the tax rate fixed in the locality. It is paid by the household, which has the use of the property on 1 January in the year, and is not apportioned if they later move. So, it is paid by the tenant if you let the property and they occupy it on 1 January; other than for very short-term rentals such as holiday/gîte lettings. Otherwise the owner pays it. Various deductions are available if the property is your main home, but if the property is your holiday home, you are not eligible for these deductions.

2. TAXE FONCIÈRE

The taxe foncière is always paid by whoever owns the property on 1 January of the relevant year, irrespective of who occupies it, and there are no special reliefs for the main home. If you sell the property part-way through the year, then the tax will be apportioned accordingly by the notairedealing with the sale. The tax is divided into two parts: tax on the buildings (taxe foncière sur les propriétés bâties) and tax on the land (taxe foncière sur les propriétés non bâties). The tax is collected by the normal local tax office.

Therefore, if you do not let out your property at all, you will be personally liable to pay the full amount of both the taxes. The combined total of these taxes depends a great deal on the area. A demand for payment is sent each year, and failure to pay by the specified date incurs a 10% or 40% penalty.

Rob Kay, Blevins Franks www.blevinsfranks.com

For more information on the French taxation system read our Guide to French taxes and 10 tax planning tips

Article by Living France Living France

More from Living in France

Wednesday, November 28, 2018

How does a jewellery designer, filmmaker and restaurateur who was born in Israel and grew up in New York come to turn a French château into an artists’ retreat? Ziggy Attias shares his life in Champagne-Ardenne

Read more
Tuesday, November 20, 2018

When Lin France and her husband Geoff moved to La Suisse Normande in Calvados they took on a major renovation project, turning a derelict building into a lovely home and a holiday accommodation business

Read more
Tuesday, November 20, 2018

France has helped launch a satellite to study the effects of global warming; but how do French attitudes towards climate change compare to those of other Europeans?

Read more
Thursday, November 15, 2018

France has historically been on the leading edge of eco-friendly projects and regulations. While many argue that much more needs to be done to meet environmental goals in France and globally, here are 11 ways that French government, companies and people are striving to be green.

Read more
Tuesday, November 6, 2018

Seen a French property that would make fabulous food business but unsure of the paperwork and process? Read Tracy Leonetti’s at-a-glance guide to opening a restaurant or cafe in France

Read more
Running a business
Wednesday, July 25, 2018

Thinking of setting up a campsite in France? Here’s what you’ll need to consider when it comes to planning permission.

Read more
Tuesday, June 26, 2018

With its unbeatable wine and cheese and laissez-faire attitude, there’s nowhere better to retire than France. But which cities are best for growing old in? Here’s the top 10

Read more
Pays de la Loire
Thursday, January 25, 2018

If you are buying in or moving to France you will need a French bank account but before you open one make sure you read these 11 things you need to know to avoid making a costly mistake

Read more
Tuesday, September 11, 2018

France might be experiencing a shortage of general practitioners but that doesn’t mean you won’t be able to find a GP willing to take on new patients. Here’s what you need to know about finding and registering with a doctor when you move to France

Read more
Expats in France
Tuesday, June 5, 2018

The French pharmacy is so much more tham a place to pick up your prescriptions. Here are 11 things you might not know about pharmacies in France.

Read more
Healthcare in France
Subscribe for

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

France Forum

Questions about France? Visit our free France forum to get help and advice from thousands of other Francophiles and expats. Topics include: property, tax, law, travelling, pets, education, healthcare and much more.

Join the forum

Most Read

Join us on social media

France magazine
Living France magazine
French Property News magazine

Enter our competitions

Win books, DVDs, travel and even holidays in France in our great competitions! Take a look at our latest competitions…

Enter now