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Taxes
in FRANCE 
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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 foncičre” 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 .
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Taxe
de Séjour
If
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 Foncičre 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
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Tax
Declarations in France
In
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
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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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