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. (See also our Fact File on
Taxe de séjour CLICK
HERE )
The “Taxe foncière” is also paid annually. This generally quite low. There
is also a wealth tax “Impột de solidarité sur la fortune” that is
paid by owners of property worth in excess of €732,000.
Inheritance tax: “Impột 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 manouver through the French tax minefield. (See also
our Tax declsarations in France CLICK
HERE )
The
above information is given without responsibility of accuracy. ©jml Property Services
09/05
SEE
ALSO: Tax in France
and
French Property Tax Deadline May 09
