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FRENCH TAX
In addition to the stamp duty and land registration fees, which are payable on completion
of the property transaction, the following taxes should be considered when purchasing
a property in France: Local Taxes, Inheritance Tax, Wealth Tax and Capital Gains Tax.
Other taxes must also be addressed, such as Income Tax, if you intend to rent out your
property, or corporation tax if you intend to purchase via a company.
1. Local Taxes: “Taxe Foncière” & “Taxe d’Habitation”
In France, they are two main local taxes which are equivalent to the UK Council Tax. They
are: “Taxe Foncière” (a property/land tax) and “Taxe d’Habitation” (a residence tax). They
are paid annually to the local authorities. Both taxes are based on the rental value of the
property and vary from region to region.
The owner of the property is liable for the “Taxe Foncière”. Owners of new properties
may be made exempt from this tax for the first two years of structural completion (at the
discretion of the local commune).
The “Taxe d’Habitation” is payable by the occupiers of the property, whether they own it
or rent it.