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Local Taxes If you are the proud owner/occupier of a French property, you should receive 2 or 3 tax bills a year, normally toward the end of the year. Taxe foncière is a land tax payable by the owner of the property. Even if there are no buildings on the land, this tax remains due unless the land is being used for agricultural purposes. Taxe d'habitation is payable by the occupier of the property and sometimes may include an element for refuse collection (ordures). If not, a separate bill will be issued for this. During the year in which you buy your property, the vendor will be responsible for paying the Taxe d'habitation as they would have been in occupation on 1st January. Even if you become the owner on 2nd January, this tax will still be his responsibility. For taxe foncière and ordures there is generally an apportionment between the vendor and the seller according to how long they own the property in that year. This is usually arranged via the Notaire in the final conveyancing deed (Acte de Vente). Although the vendor will receive the taxe foncière bill, they will be entitled to reimbursement by the purchaser as soon as he provides proof that he has been billed. Purchasers of new property may be entitled to an exemption from taxe foncière for 2 years and longer in certain developments. When the building works have finished, you have a responsibility to inform the local Mairie. This declaration forms part of the file containing the building permit you received. You are required to send 3 copies to the Mairie by recorded delivery. If you are entitled to an exemption from Taxe foncière, the period of exemption will begin from the date the works were completed. A building is considered to have been completed from the time when it can be used for it's intended use even though there may still be some work to do - e.g. decorations. However, the external rendering must be done and safety features in place e.g. balustrades. This may explain to you why so many new properties are left un-rendered for a long time! Within 90 days of completing the works you must also submit a form declaring the works finished. This form will be either with your building permit or can be obtained from the Mairie. Without this declaration being made, you could lose the benefit of exemption from taxe foncière. In the event that you are late with the declaration, the exemption will only run from the period after 31st December of the year following the deposit of the declaration. Also a fine may be imposed, so be warned! Failure to deposit a declaration, late declaration or incomplete declaration may attract un complément d'imposition (extra tax) at any time. If your vendor has built an extension to the property you are buying, it would be advisable to make sure the local authority is aware of it so that your tax calculation is correct. Both taxe d'habitation and taxe foncière are calculated using the rental value of the property as a base figure. Therefore the taxes upon property in towns and cities are much higher than that on properties in small villages. A property situated in a tourist area, may be subject to additional tax included in the taxe d'habitation charge for maintaining the area to a higher than 'norm' standard. Also, if there is an exceptional expense, such as improving the sewage system, then there may be a separate one-off bill. You should always pay tax bills promptly as you will otherwise incur penalties that will be added on to the reminder bill. It is not uncommon for owners of French property not to receive their tax bills, especially if the English address continues to be used for correspondence after you have moved!. In this case you should write to the appropriate authority by recorded delivery advising them that you have not received a bill and asking them to send it, otherwise you may have great difficulty convincing them that you are not liable for the late payment charge. At Allez Français we try to arrange for our clients bills to be dealt with as efficiently as possible, making sure that the meters are read and agreed by both vendor and purchaser and that the most suitable address is used for future billing, taking into account the purchaser's situation. We ensure that our clients are aware of their responsibilities for their future liabilities in this respect. For further information about property for sale, insurance
and property related matters please visit our website www.allez-francais.com
or email allez-francais@wanadoo.fr |
