PROPERTY TAX (TAXE FONCIÈRE) : Payment deadline: mid-October
This tax is payable annually by owners of built properties, as well as owners of undeveloped land (“taxe foncière on non-built properties”).
RESIDENCE TAX (TAXE D’HABITATION) : Payment deadline: mid-November
The residence tax on primary residences has been abolished since 1 January 2023. However, it remains payable for secondary residences if you are the owner or usufructuary (a person holding the right to use a property and receive rental income from it).
IMPORTANT : All property owners are required to declare their rental income, which must be submitted via the online tax portal.
3% TAX FOR COMPANIES
IMPORTANT: no UBO declaration and no ETNC compliance.*
The 3% tax on market value applies to all legal entities, trusts, and similar structures (legal entities), whether French or foreign, regardless of their legal form, whether incorporated or not, that own real estate or property rights in France as of 1 January of the relevant year, either directly or indirectly through other entities.
The tax applies to real estate assets held in France on 1 January each year. Affected entities must file a declaration no later than 1 May each year. Numerous exemptions exist where filing form No. 2746 is not required.
To avoid this tax, the beneficial owner must be declared, and for ETNC jurisdictions, an administrative assistance clause or a non-discrimination clause must be in place between France and the relevant country.
BUSINESS PROPERTY TAX (CFE)
Payment deadline: mid-December
The CFE is payable by companies and individuals engaged in professional furnished rental activity on a professional independent basis, regardless of legal status, activity, or tax regime. Newly created businesses are exempt from CFE in their first year and benefit from a 50% reduction in the tax base during the first year of taxation. CFE must be paid no later than 15 December each year.
RENTAL INCOME CONTRIBUTION (CRL) FOR COMPANIES
The CRL applies to rental income from professional or residential premises located in France, in completed buildings (fit for occupation) that have been in use for more than 15 years as of 1 January of the tax year. It applies only to legal entities or non-profit organisations subject to corporate income tax. The CRL is calculated on net rental income received during the tax year. The rate is 2.5%, applied to rental income.
TAX ON VACANT PROPERTIES : Payment deadline: mid-December
In certain municipalities, a tax on vacant properties applies if you own a dwelling that has been unoccupied for at least one year. This tax is based on the property’s rental value (similar to the residence tax).