Property Taxes – Taxe Fonciere & Taxe d’Habitation
There are two property taxes on all residential property. These are collected by the State for the local authorities. These taxes are assessed at individual rates according to location and can vary substantially. It is a good idea to check these two details when you are assessing a property to buy.
Taxe fonciére (land tax)
As the owner of a property you are liable for paying this tax which is due for payment by October/November. Penalties or fines are added for late payment. It is possible to arrange a monthly payment scheme. For most US and UK buyers the 7-8% tax on a purchase seems high, annual property taxes in France are substantially lower than in the United States. Where US property is taxed by the state anywhere from 0.5% to 3% annually, the Taxe Fonciére (land tax) is about 0.1 to 0.2% per year.
Taxe d’habitation (local taxes)
Only due on a habitable building. The occupant of the property on the first day of January is liable for paying this tax. Even if you only use the property on occasional visits, if it is furnished and supplied with water and electricity you are liable for this tax. The amount of this tax will vary from one place to another and according to the size of the property. (If you rent your property to someone else and they are living there on the first day of January for the year, they are liable to pay this tax.)
Those who do not live in France but own property here can pay these taxes monthly with the program called “prélèvement mensuel”.