Tax is an important consideration when budgeting for your purchase of property in France. Below is a brief description of the taxes that you will be liable for as a French property owner.
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 in fall each year by the tenant 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 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 for the first 5 years of ownership and the nit decreases by 10% per year to reach 0 after 15 years of ownership.
Droits de succession Inheritance tax has tremendously changed recently in France and assets transferted between parents and / or spouse are free of tax
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%.
Stamp Duty for the transfer of ownership of a property has to be paid by the buyer. The overall extracost of purchase can be estimated slightly Under 5% for off-plan properties and slightly Under 9.5% in case of resale.
IMPOT SUR LE REVENU (Income Tax) is payable by all residents in France and all non residents making profits in France. It is based upon your annual income received. For rental income from your property, the tax is estimated at 25% of the net income (after several déductions land tax, interests repayments of a French mortgage, charges,…)
Get the latest property and investment opportunities direct to your inbox (you can unsubscribe anytime)
Parisian Office Market at Peak Levels
Hollande Unlikely to be Re-Elected - Paris Property Booms
Brits Top Buyers of French Property
Quelle Surprise!! Fun, Interesting Facts About France
Candlelight Auctions 'de Rigueur' in 2014
Weak Property Property Market Sends Buy Signals to Savvy Investors
All property news from France
Subscribe to our RSS Feed
Fill out a requirements form and our experts will help you find a great selection of properties for sale in France.
Help me find property in France
Considering a property purchase in France or need to transfer currency to/from France?
Save Thousands in Currency Transfers
When considering a buying property in France, you are well advised to get expert mortgage advice from a mortgage broker.
Get a mortgage quote in France
Owners Direct is one of the UK's leading direct from owner rental websites and the first choice for holiday home owners who want a cost effective and easy way to fully book their properties.
Find out more
If you own or are about to purchase property in France, you get an insurance quote using our online insurance quote form.
Get Insurance in France
Do you have your British assets covered by a will?
Do you have your movable foreign assets covered by a will?
Have you made plans to protect your family in the event of your death?
Get more information on Wills
Everything you need to know about transferring your UK Pension is in our downloadable guide.
Get more information on Pensions
Provence-Alpes-Cote d'Azur Property
Region Auvergne Property
Region Centre Property
Region Ile-de-France Property
Region Limousin Property
Region Lorraine Property
Region Nord-Pas-de-Calais Property
Region Pays de la Loire Property
Subscribe to our newsletter and keep up to date with the latest and best investment opportunities around the world!