Taxe Foncière & Taxe D'Habitation

What is Taxe Foncière?

The taxe foncière is the annual local land and building ownership tax and can be split into the taxe foncière on 'propriétés bâties' (property) and the taxe foncière on 'propriétés non-bâties' (land).

The taxe foncière comprises several additional taxes and charges, including a charge for collection of household rubbish (taxe d'enlèvement des ordures ménagères) for those communes where this service is provided.

Who pays Taxe Foncière?

Taxe foncière is payable on all homes, whether they are used for holidays or a permanent residence. It is due to be paid by the person who is the owner of the property as at 1 January of the year in question. In years of purchase/sale of a property, the taxe foncière for the year is normally split pro-rata between the vendor and the purchaser.

How is Taxe Foncière calculated?

The taxe foncière is based on the 'rental' value of the property. This value is reduced by a 50% abatement and rates are set at commune level, so vary depending on where the property is situated. Taxe foncière demands are normally sent out in September/October for the current year and are payable by the middle of the following month. It is possible to opt to pay the tax in monthly instalments.

What is Taxe d'Habitation?

The taxe d'habitation is the occupier's rates, roughly equivalent to council tax in the UK. The funds collected are split between the commune and the group of communes that the commune belongs to. TV licence fees are recovered at the same time as the taxe d'habitation, on the same demand. It should be noted that if you have more than one property in France, you will only pay the TV licence once, even if you have a TV in both properties.

Who pays Taxe d'Habitation?

This is due by the person residing in the property as at 1 January of the year of charge, whether this is a tenant (paying or otherwise) or the owner.

If the property is rented out for short-term holiday lets or is used as a holiday home only, the owner will normally remain liable to this charge. In years of purchase or sale of a property, the taxe d'habitation is payable by the vendor.

How is my Taxe d'Habitation rate calculated?

Similar to the taxe foncière, the tax is based on the cadastral 'rental' value of the property. This value is reduced by certain abatements when the property concerned is the main residence of the taxpayer. Rates are set at commune level so vary depending on where the property is situated. Taxe d'habitation demands for the current year are normally sent out in August/September, and are payable in October/November. It is possible to choose to pay the tax due in monthly instalments.

Content courtesy of Completefrance.com