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
