Local Taxes in France

Question: If a concern of mine is to keep overheads ie. taxes etc as low as possible, what should I be seeking - are there any guides as to how high taxes are etc? Merci Chris.

Answer: There are two basic local property taxes in France which are, sort of, the equivalent to the UK council tax; only much cheaper of course, they are called Taxe foncière and Taxe d’Habitation. So when looking for a property to buy in France you can look at certain properties that will have low taxes compared to others that will have higher taxes.

Cle France can always confirm the taxes in advance of you committing to buy a property as of course these are 2 ‘overheads’ that cannot really be avoided and need to be paid on time to avoid fines and headaches.

Both taxes are subject to size and location so to keep these taxes down to a minimum keep the house habitable space small and the garden small as the larger the house and larger the plot size will only increase each tax. Land is more expensive in a city than in a town or a village and cheapest in the countryside so a rural location will have the lowest taxes. However some “Village Fleurie” will have high taxes if only to pay for all the flowers they display, floral villages look nice but can have high taxes for the residents and some regions are less expensive than others, keep to rural areas and avoid the South of France to keep these taxes in check.

Tax Habitation is based, in part, on the size of the property so the more ‘habitable space’ a house has the higher the Habitaion tax as it is calculated “per / m2” so one thing to consider is if you are planning to extend or renovate a property then as you increase the habitable space then you will of course increase the habitation tax.

The other and more influential aspect of this tax is it is actually linked to your income, if you live full time at the property. If you are not living full time at the property i.e. It is a holiday home then you still pay a Tax Habitation but it is basic and not linked to your earnings.

Only if the property is derelict or a complete renovation project will it be exempt from this tax and the local Mairie will be on the lookout for developments on the property especially if you have submitted and planning application so he can apply the tax to the “m2 SHON” of your finished project.

Tax Fonciere is based on the size of the plot and where the plot is of course i.e. The value of the land per / m2. So the more land you have the higher the tax and if you have a very small garden the the tax will be lower, it includes the land the house is built on so even if you have no outside space you will still be liable to a small Tax Fonciere bill.

Some time ago we published a good article that goes into more detail and explains the 2 main taxes involved with owning a property in France, Taxe Habitation and Tax Fonciere, click here or the image below to read this article in full.