France Property

France has a large number of taxes levied on all aspects of life, including property. As a property owner, you will need to be aware of both national and lo local taxes.

Taxe Fonciere is a property tax that consists of taxes for the land and the building. The amount paid varies enormously according to location.

Taxe d’Habitation is similar to the UK’s Council Tax and is a residential tax payable on January 1st each year by the person living in your property. You will be liable for this tax in addition to the Taxe Fonciere if you live in your property as a principal residence.

Taxe Assimilee is charged in areas such as busy holiday resorts where local authorities have to spend more on maintenance and upkeep of public facilities.

Taxe Professionelle is charged if you use your home also as your place of work.

Impot sur le plus-values (Capital Gains Tax) is not payable on property sale if it has been your principal residence. However if the property is not your principal residence, tax will be levied at 16% unless you have owned the property for more than 15 years.

Droits de succession (Inheritance Tax) are charged on a complex sliding scale on assets over €76,000. Unlike in the UK, your spouse is not exempt.

Taxe a la Valeur Ajoutee (VAT) is charged at a higher rate and on more items than in the UK. Currently TVA stands at a rate of 19.6%.

Revenue Fonciere is charged on rental income. It is payable on your long-term rental income at a rate of 25%.

Stamp Duty of 6% is levied in accordance with the value of your property.

IRPP (Income Tax) is payable by all residents in France and is based upon your annual income received.