Local property taxes are an important consideration for people buying second homes or moving to France, and bills can vary widely.
Paperwork is minimal in most cases, with bills available in personal spaces on the tax website (a paper option is still available).
Many opt for direct debit payment in monthly instalments (mensualisation), which is possible if you have a bank account in the European Sepa area, including the UK.
The local property taxes are levied based on the situation on January 1 of the French tax (calendar) year.
They are ‘local’ because they help pay for council services.
The main tax is taxe foncière (TF).
It means ‘real estate tax’ and the most familiar kind is for ‘built properties’ and their adjoining gardens, garages etc (there is also an ‘unbuilt’ version, on land).
For those paying in one go, deadlines are coming up on October 15 for ‘traditional’ methods and October 20 for online payments.
Formerly, most people also paid taxe d’habitation (TH) – ‘residential tax’ – but since 2023 it is only on second homes.
Councils receive money from central government in compensation, but some claim it is not enough.
TH is not paid by owner-occupiers or owners of properties rented out as someone’s home, but it can be payable on a property used for holiday lets if you sometimes have it available to use yourself.
Communes (including many coastal resorts) facing housing shortages may also levy a TH surtax at 5-60%, with roughly half of those eligible having opted to do it.
Main homes and second homes
Your main residence is the one where you live ‘habitually’ or have the strongest ties, and it should be declared as such via the Biens immobiliers declaration in your online space.
Homeowners are asked to update any change in use (main home to second home, personal use to rented out etc) by June 30 for changes in the previous year.
Non-residents cannot have a ‘main’ French home.
The other key local taxes are TEOM or REOM for rubbish collection (one or other applies).
TEOM, where it exists, is added to the TF bill.
These taxes, which can include a variable ‘incentive’ element depending on how much rubbish you put out, are meant to be billed strictly to cover the cost of the service, but there are reports of some councils inflating them.
Certain taxes may also be levied on properties left unused and unfurnished (in which case ordinary TF is not due).
Several other small taxes may be added to TF bills, such as to help fund acquisition of land for public projects, or flood prevention works.
The taxes, with the exception of REOM, are worked out based on a theoretical annual rental value (valeur locative cadastrale, or VLC), to which percentage rates voted by the commune are added, plus, often, a rate for an intercommunal authority grouping several towns or villages.
How the VLC is set
VLC calculations are complex but you can find yours by looking at your TF bill (avis d’impôts locaux) – for TF, the tax ‘base’ is half the VLC.
In fact, VLCs reflect rental market studies last done in 1970. For a given property the calculation also reflects floor space, ‘comfort elements’ (lift, bathroom, central heating…), luxury, maintenance, and ‘dependencies’ such as swimming pools or garages.
Dependencies give rise to fictitious increases in floor space, variable depending on the type of amenity. When a new building is constructed, its VLC is allocated in comparison to similar properties.
VLCs are raised annually linked to inflation by a rate in the year’s national budget; individual VLCs are also adjusted when new facilities and extensions are built and reported.
People sometimes obtain tax reductions by asking for the breakdown of their VLC from their centre des impôts fonciers (property tax office) and arguing the ‘maintenance coefficient’ (from 0.8 – poor – to 1.2) or luxury category (from 1, luxurious, to 8, dilapidated) is too high or there is an error over floor space or dependencies.
For years, a planned reform to reflect market realities (eg. how desirable an area is) has been put off.
Notaires now say it is expected from 2029’s bills, using real rents landlords will be obliged to enter in Biens immobiliers from 2026.
It is envisaged that most properties will simply be given a value for a ‘flat’ or ‘house’ of a given size (adjusted for dependencies) in their local area.
It will be based on average rents but then adjusted (usually, down) by a council-wide coefficient to ensure that overall tax collected remains the same.
Only very unusual properties will be assessed individually.
It could mean a basic flat in a salubrious area may see the VLC hiked, while a smart one in a less sought-after area might see a drop.
A study by statistics organisation IPP estimates that, on average, properties built before 1950 will see a 15% hike, while those built in the 1960s-1970s will see bills drop by 16%.
Individual council rates play a big role in how much you pay.
You can find them up to 2024 here by clicking fiscalité locale des particuliers et des professionnels then following options to obtain a searchable map.
When buying or renting, ask the seller/landlord how much the taxes are (for tenants, only rubbish tax should be payable).
Buyers customarily agree to pay the year’s TF pro rata from the purchase date.
Several local tax reductions or exemptions exist, mostly only for main homes. For example, over-75s or disability benefit claimants are exempt from TF if household income is ‘modest’.
Those aged 65-74 with the same incomes obtain a €100 reduction.
If you suspect an error on your bill, make a réclamation via your personal space (see above) by clicking je signale une erreur sur le calcul de mon impôt.
