| Taxes
in FRANCE  -
information on French taxes for property owners Taxes
in France So
you are about to purchase that ideal property – If you require finance or don’t
you still have to take into account the payment of property taxes.
In France the tax system is centralised, however the location of the property
will ultimately determine how much you pay. First of all you have to pay the“notaire’s”
fee. Most of this in fact goes to the government like Stamp Duty in the UK. This
will work out around 6% to 8% of the purchase price. There is also a small land
registry tax to pay. The
property sale is now complete. You have the“Taxe D’Habitation” which is
a local tax. The amount you will pay is determined from the cadastral value of
the property. This is based on the size and location –not market value. It is
generally thought to be reasonable particularly in rural areas. It
should be noted that if you let your property as a holiday let and go there a
few times a year you still pay the“Taxe D’Habitation”, but in many areas
you will also have to collect a“Taxe de Séjour” from your “paying guests”.
The authorities see it as you are making money from renting out the property then
so you should pay them some revenue as well. This might only be a few cents per
person per day, but it still has to be paid and it will depend on your local town
hall.
The “Taxe foncière” is also paid annually. This generally quite low. There
is also a wealth tax “Imp?t de solidarité sur la fortune” that is paid
by owners of property worth in excess of €732,000. Inheritance tax:“Imp?t sur
les successions” this usually has to be paid when the owner dies or one of them.
You are also expected to pay tax on any rental income and although France has
tax treaties with many countries including the UK it is worthwhile employing an
accountant to help you manoeuvre through the French tax minefield. The
above information is given without responsibility of accuracy. ©jml Property Services
09/05 . *******************Taxe
de SéjourIf
you are letting your holiday property, then you might well have to charge a daily
tourist visitor tax as a hotel owner would normally have to pay. The issue came
to the attention of a jmlvillas.com client in the summer of 2005.
The local Marie sent a tax demand for 2005 and also advised it had overlooked
2004 and 2003. Naturally there was no way to try and obtain any re-imbursement
from 2005 clients who had completed formalities or any from previous years. The
Marie in the South of France now requires 70 cents per adult per day. They state
that even though a property owner is paying Taxe d'Habitation and Taxe
Foncière the property owner is “still making money” on the letting and they
want a small percentage for the village/town.
We asked some of our advertisers from around France and here is a selection of
replies. There certainly does not appear a standard for France like with other
taxes and you will see from the replies it varies from area to area or even Marie.
“Taxe
de Séjour is a local tax set by the Marie usually per head adults and
over 12yr in our commune there are variable according to status of rental ,hotel
gite camping or immeubles pour location. Our rate is .30€ per head per day so
2.1€ per week so could be 8.4€ per family per week , which is a joke if you have
to charge the tourist that sum so its included in the rental . There isn't much
of a "control" so I never have more than one family stay in a gite with children
always under 12 years old”
“Can't really help but....in our village there is no Taxe de Séjour
but in neighbouring villages there is...I think perhaps it depends on your Mayor
and the rules of your commune”
“Yes we are aware though that it only applied to Brittany( our local rates are
50 cents per night for Adults only between June and August, it is something that
apparently was tried a few years ago without success”
“Our experience of this is that each individual Marie has the right to impose
the charge but they are not oblige to. We have never registered our 2 little cottages
with the tourist board as we stick to clients from anywhere else in the world.
Perhaps this has helped us avoid the problem. Our main property in which we do
B & B as well as renting it out, was first registered with Gites de France and
because of that we just got into the system (we even have a Siret number). But
again, our local Marie has never imposed a tourist tax on us — get friendly with
the Maire!”
If you have any further input please contact us to let us know. To contact
us CLICK
HERE ©jmlpropertyservices10/05 *******************Tax
Declarations in FranceIn
France anyone (either resident in France or Non resident) who derives income from
a French based property, irrespective of where that income is paid or received
, must make an annual declaration of that income to the French Revenue authorities.
It
is not sufficient to rely on the fact that the income may have been declared to
the Uk Inland Revenue. There is also evidence of increased contacts between the
UK Inland Revenue and their French counterparts.
As it is a French based asset the French authorities will expect the first option
on the tax on that income . It is also the responsibility of the Tax payer to
make the declaration and not simply to rely on the Tax authority sending them
a declaration.
The penalties for late/non declaration can be severe. source David Gibson —
Cabinet Berthet: If you would like to contact David Gibson please CLICK
HERE complete the Contact Box and we will forward on the enquiry
©jmlpropertyservices10/05 *******************N.B.
This information on this page should not be relied on for accuracy and is presented
here without the responsibility of jml Property Service and the website it is
being displayed at. ©jml property Services 09-05
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